Third party’s rights against an undisclosed principals are subject to two exceptions:
What is: The principal’s liability is limited to theagent’s actual authority, except that a 3rdparty cannot sue if:1. The principal for payment under contract if the principal made a good-faith settlement on the account with the agent2. the 3rd party expresses intention to hold the agent liable for the contract Home
Undisclosed principal’s right against a third party are limited in these 4 circumstances.
What is:1. Agent Fraud,2. Enforcement would impose a substantial additional burden (“provide all that may be required”),3. Contract specifies agent’s personal performance, and4. In breach of contract suits a judgement against the agent destroys the undisclosed principal’s right of recovery against the 3rd party? Home
These six situations create agent’s liability to a third party even when the principal is disclosed.
HomeWhat is:1. Agent breaches implied warranty of authority,2. Agents acts on behalf of minor/mentally incompetent person and the 3rd party is unaware that the principal cannot contract,3. Agent purported to act personally and did not disclose the principal,4. Agent voluntarily guarantees performance of principal under the contract, and5. Agent has no authority to collect money and does.6. Agent is liable for fraudulent or malicious acts even under principal’s direction?
HomeWhat is the agent can assert:1. Breach of contract when both agent and 3rd party agree the contract obligates the agent,2. Breach of contract when the principal is undisclosed (principal has superior right),3. Personal defenses that the principal or agent performed the contract, that the 3rd party failed to perform, or that the statue of frauds or limitations precludes recovery, and4. With disclosed/partially disclosed principal’s consent, the agent can assert the principal’s defenses against the 3rd party?
A person or an entity that is employed to act for the principal in a specific transaction or only for a particular purpose or class of work?
What is specified in the contract? What is written or oral communication that severs the producer’s actual authority? What is notifying all parties that the producer relationship has ended, plus collecting all application forms and stationary? Home