[Anonymous]

I came across this in Ninja notes.

Liability when acting for an Undisclosed Principal

o Agent liable to third party even if acting within

authority

o Third party can sue both Principal and Agent if

Principal becomes disclosed

o Agent can then sue Principal

How does this make sense? Hey, I know who you’re working an agent for, so I’m going to sue you now?

[Mamabear]

I think it means that you can sue the agent in both cases, but you can only sue the principal if the principal becomes known. Basically since you don't know who the principal is, you can't sue them, but in both cases you know who the agent is and can sue the agent. Does that make sense?

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Anonymous]

Oh, gotcha. Thanks a bunch.

[Author]

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