Is it an absolute proposition of law that in a contractual relationship of a principal and an agent, a principal is always bound by the acts of the agent, and an agent takes no rights or incurs no personal liability under a contract entered into by him as an agent of the principal with the third person?

A) No. An agent is personally and jointly and severally liable in all contracts B) No. An agent will be personally liable only when he does not disclose the name of his principal or when the name is disclosed but the principal cannot be sued for reasons provided in law C) No. An Agent will be personally liable if the principal has expired in view of the Legal Representation Act D) None of the above

Answer & Solution

Correct Answer: Option B

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