What is an example of undisclosed principal?
What is an example of undisclosed principal?
The purchase of the land required to build the Walt Disney World resort in Orange County, Florida was accomplished with agents working for Walt Disney Productions as their undisclosed principal.
What is disclosed principal in law?
A disclosed principal occurs when the party has notice that the agent is acting for a principal and has notice of the party’s identity.
What is disclosed and undisclosed principal?
In the contract law, the term “undisclosed principal” relates mainly to the liability of an agent for the obligations incurred on behalf of the principal. He is a person who acts through an agent for the purpose of any negotiation with the third party without his identity being disclosed.
What are examples of the principal agent relationship?
Common examples of the principal-agent relationship include hiring a contractor to complete a repair on a home, retaining an attorney to perform legal work, or asking an investment advisor to diversify a portfolio of stocks.
What is a disclosed principal quizlet?
Disclosed Principal. principal whose existence and identity are known. Unidentified (Partially Disclosed) Principal. principal whose existence is known. but whose identity is not known.
Who is a disclosed principal under the law of agency?
Disclosed Principal: A principal whose identity is known to the third party at the time the agent makes a contract for the principal with the third party.
When a principal is classified as a disclosed principal Which of the following is true?
A. 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.
What are some examples of agency problems?
Understanding Agency Problems For example, a principal will hire a plumber—the agent—to fix plumbing issues. Although the plumber’s best interest is to collect as much income as possible, they are given the responsibility to perform in whatever situation results in the most benefit to the principal.
When a principal is partially disclosed or unidentified?
A partially disclosed principal or “unidentified principal” is a person whose existence but not identity is made known to the third party through words or the performance of an authorized act.
When a principal is partially disclosed Who is liable?
A disclosed or partially disclosed principal is liable to a third party for a contract made by an agent who is acting within the scope of his or her authority. Disclosed Principal: A principal whose identity is known to the third party at the time the agent makes a contract for the principal with the third party.
Which of the following is not an example of an agency problem?
The answer is c- a book keeper hired from a temp agency mis-keys several large transactions. This is not an agency problem but incompetence and not… See full answer below.
