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Why Is It Legally Permissible for a Plaintiff to Hold

Question 132

Multiple Choice

Why is it legally permissible for a plaintiff to hold an agent liable on a contract when the existence of the agency arrangement was not disclosed?


A) so that the outcome in a contract situation is the same as that for a tort
B) to discourage the use of undisclosed agency arrangements
C) to offset the fraud frequently present in such a situation
D) so a third party can rely exclusively on the reputation of the agent when entering into such an agreement
E) to ensure that the principal fulfills its obligations under contracts negotiated by authorized agents

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