Reference no: EM131124813
1. Sid told Richard that he wanted to buy Richard's house "on behalf of a party who wishes to remain unknown." The party is Desert Builders. With Desert's consent, Sid contracted with Richard on Desert's behalf to buy the house. What is Sid's liability on this contract?
A. Sid is liable because Desert is an undisclosed principal
B. Sid can be liable only if she expressly agreed to be liable
C. Sid is liable because Desert is an unidentified principal
D. Sid is liable because Desert is an unidentified principal, but he can seek indemnification from Desert
E. All of the above answers are correct.
2. If an agent has, within the scope of the agency relationship, committed both negligent and intentional acts resulting in injury to third parties, the principal:
A. will be liable under the doctrine of respondeat superior only for the intentional acts of the agent.
B. may be liable even if the agent's acts were unauthorized
C. may effectively limit his or her liability to those third parties if the agent has signed a disclaimer absolving the principal from liability.
D. will never be criminally liable unless he or she actively participated in the acts
E. None of the above answers is correct.
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