Delilah, does not return with wood pulp, but brings back three contracts. Acting within the scope of her authority, she contracted with Evon, who knew your identity at the time; Felipe, who knew that Delilah was acting on behalf of someone but not whom; and Giorgio, who did not know that Delilah was acting on anyone’s behalf. For which contracts, if any, are you liable? For which contracts, if any, is Delilah liable? Explain. For which contracts, if any, are you liable?
I would have to say that I would be liable for all three contracts because I sent Delilah to act on my behalf and according to agency relationship it clearly states that in a principal-agent relationship, the parties agree that the agent will act on behalf and instead of the principal in negotiating and transacting business with third persons (Roger LeRoy Miller, 2008). An agent id empowered to perform legal acts that are binding on the principal and can bind a principal in a contract with a third person (Roger LeRoy Miller, 2008).
There are other principles that can hold me accountable for these contracts. An undisclosed principal generally refers to a principal person whose existence is unknown to the third party with whom the agent deals and so, in the eyes of the third party, the agent is the principal.
Common law doctrine on undisclosed principals confers rights and imposes liabilities on the undisclosed principal, notwithstanding that he is not made a party to the relevant contract (Reserved, 2006). The rights and duties between the principal and the agent in an undisclosed principal situation are basically the same as in a disclosed principal situation. The agent is to be treated as a trustee for the undisclosed principal of any goods or payments received or any benefit that he derives from the contract with the third party and is liable to account to the principal for such goods, payment or benefit, as in the case of the disclosed principal (Reserved, 2006).
A partially disclosed principal is a principal whose identity is not known by the third party, but the third party knows that the agent is or may be acting for a principal at the time the contract is made (Reserved, 2006). So In this case I would have to be the principal and Delilah is the agents and I gave her permission to act on my behalf which means that all three contracts I have to abide by.
Reserved, E. A. (2006). Esates Agents . Retrieved from Esates Agents Authority: http://www.eaa.org.hk/Home/Publications/AgencyLaw/tabid/208/language/en-US/Default.aspx Roger LeRoy Miller, W. E. (2008). Business Law Text & Exercises. Mason Ohio: Cengage learning.