John Agreed to Build a New House for Ted

Multiple Choice

John agreed to build a new house for Ted.Unknown to John,Ted was an agent for Russell Realty.John built the house as agreed.When Ted refused to pay,John became aware that Ted was an agent for Russell.John wants to sue on the contract.Under the Second Restatement,John:

A) must sue Ted,because Ted is the person with whom he dealt.
B) can collect judgments against Ted and Russell.
C) must sue Russell,because Russell is the principal.
D) can sue either Ted or Russell.