12. Mayberry engaged Williams as her agent.It was mutually agreed that Williams would not disclose that he was acting as Mayberry\'s agent.Instead he was to deal with prospective customers as if he were a principal acting on his own behalf.This he did and made several contracts for Mayberry.Assuming Mayberry and Williams seek to avoid liability on one of the contracts involved, which of the following statements is correct? Select one: a. Williams has no liability once he discloses that Mayberry was the real principal. b. Mayberry must ratify the Williams contracts in order to be held liable. c. The third party may choose to hold either Williams or Mayberry liable. d. The third party can avoid liability because he believed he was dealing with Williams as principal. Solution C) The third party may choose to hold either williams or mayberry liable .

1. 12. Mayberry engaged Williams as her agent.It was mutually agreed that Williams would not
disclose that he was acting as Mayberry's agent.Instead he was to deal with prospective
customers as if he were a principal acting on his own behalf.This he did and made several
contracts for Mayberry.Assuming Mayberry and Williams seek to avoid liability on one of the
contracts involved, which of the following statements is correct?
Select one:
a. Williams has no liability once he discloses that Mayberry was the real principal.
b. Mayberry must ratify the Williams contracts in order to be held liable.
c. The third party may choose to hold either Williams or Mayberry liable.
d. The third party can avoid liability because he believed he was dealing with Williams as
principal.
Solution
C) The third party may choose to hold either williams or mayberry liable