When the principal is liable on a contract, what is the agent's usual liability?

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Multiple Choice

When the principal is liable on a contract, what is the agent's usual liability?

Explanation:
When a contract is made by an agent for a disclosed principal, the principal is the one bound by the contract and the agent does not bear personal contractual liability. The agent’s role is to facilitate the deal on behalf of the principal, so as long as the agent acts within authority and reveals the principal’s identity, the third party can look only to the principal for performance. The agent would only be personally liable if the agent signs in the agent’s own name, or if the principal is undisclosed or partially disclosed (or the agent lacks authority), in which case liability may attach to the agent.

When a contract is made by an agent for a disclosed principal, the principal is the one bound by the contract and the agent does not bear personal contractual liability. The agent’s role is to facilitate the deal on behalf of the principal, so as long as the agent acts within authority and reveals the principal’s identity, the third party can look only to the principal for performance. The agent would only be personally liable if the agent signs in the agent’s own name, or if the principal is undisclosed or partially disclosed (or the agent lacks authority), in which case liability may attach to the agent.

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