Law · Law of Agency
Arthur entered into a contract with Ted without disclosing that he was acting as an agent on the instructions of Patricia. Under the law of undisclosed principal, what rights does Ted have?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Ted may sue both Patricia and Arthur jointly, as they are treated as joint principals.
- 2Ted may sue Patricia or Arthur, since Arthur was acting as an agent for an undisclosed principal.✓
- 3Ted may sue Patricia only, because Arthur was in fact acting as her agent.
- 4Ted may sue Arthur only, as he had no knowledge that Arthur was an agent.
Correct answer
Ted may sue Patricia or Arthur, since Arthur was acting as an agent for an undisclosed principal.
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