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Agency Liability to Third Parties Question and answers rated A+

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Agency Liability to Third Parties Question and answers rated A+ Agency Liability to Third Parties (Undisclosed Principal) - correct answer Homeowners Jim and Lisa Criss hired Kevin Pappas, doing business as Outside Creations, to undertake a landscaping project. Kevin signed the parties' contract...

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  • August 20, 2024
  • 3
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • agency liability to third parties
  • agency liability to third parties question and ans

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Agency Liability to Third Parties
(Undisclosed Principal)
Agency Liability to Third Parties (Undisclosed Principal) - correct answer
✔Homeowners Jim and Lisa Criss hired Kevin Pappas, doing business as
Outside Creations, to undertake a landscaping project. Kevin signed the
parties' contract as "Outside Creations Rep." The Crisses made payments on
the contract with checks payable to Kevin, who deposited them in his personal
account. There was no Outside Creations account. Later, alleging breach of
contract, the Crisses filed a suit in a state court against Pappas. The
defendant contended that he could not be liable because the contract was not
with him personally. He claimed that he was the agent of Forever Green
Landscaping and Irrigation, Inc., which had been operating under the name
"Outside Creations" at the time of the contract and had since filed for
bankruptcy. The Crisses pointed out that the name "Forever Green" was not
in the contract. Should Pappas be liable on this contract?


1. The plaintiff in this case is - correct answer ✔the Criss Family


2. The defendant in this case is - correct answer ✔Pappas


3. In the contract, Pappas signed as an agent for - correct answer ✔Outside
Creations


4. Outside Creations would be principal in the contract. - correct answer ✔a
disclosed


5. This type of principal ___ liable to a third party for contracts made by its
agents. - correct answer ✔is

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