Multiple Choice
Which of the following is false regarding classification of principals?
A) If the third party does not know that an agent is acting on behalf of a principal,an undisclosed principal is involved.
B) When the third party is aware that the agent is making an agreement on behalf of a principal and also knows who the principal is,the principal is a disclosed principal.
C) Classification of the principal is important because it helps determine the principal's liability.
D) An unidentified principal is in the same classification as a partially disclosed principal.
E) If the third party is aware of the principal's existence but not his or her identity,the principal is classified as a disclosed principal.
Correct Answer:

Verified
Correct Answer:
Verified
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