Question

An agent is always liable for a contract he or she enters into on behalf of an undisclosed principal. TRUE OR FALSE Trent was retained, in writing, to act as Post's agent for the sale of Post's memorabilia collection. To be Post's agent, Trent must be at least 18 years of age. TRUE OR FALSE A court will most likely pierce the corporate veil and hold a shareholder personally liable if the corporation has failed to elect S corporation status under the Internal Revenue Code TRUE OR FALSE A minor who operates a business cannot disaffirm business contracts entered into by his or her agents. TRUE OR FALSE

Answer 1

Answer to first question in the list FALSE Reason: Under contract law, undisclosed principal refers to the principal on behalf of whom the agent enters into a contract with third party (or parties) but not disclosing who is the principal. In that case, undisclosed principal's liability to the third parties arising on account of contract entered into by the agent is continued if such agent has entered into the contract within the scope and authorities given to him and not for agent's own benefits It is observed from the above lines that the agent is not aways liable for the contract that he or she enters into but on behalf of undisclosed principal. Therefore, given statement is false