If a principal is partially disclosed, what is the agent's liability when a third party sues?

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In situations where a principal is partially disclosed, the agent retains certain liabilities when dealing with third parties. A partially disclosed principal means that the third party is aware of the existence of the principal but does not know the principal's identity. In this context, the agent can still bind the principal to the contract, but they may also be held personally liable.

If the agent acts beyond the scope of their authority while carrying out their responsibilities, they can be held liable to the third party who may choose to sue. This liability arises because the third party may have relied on the agent's representations or actions when engaging in a transaction. Therefore, if the agent exceeds their authority, the agent can indeed be held personally liable to the third party, as they cannot rely solely on the principle being partially disclosed.

While the principal will also be liable to the third party for authorized actions taken by the agent, the agent retains liability for their own actions, particularly when acting outside the authority granted to them. Thus, the notion that the agent is liable if they exceeded their authority directly aligns with the rules of agency law regarding liability in these kinds of relationships.

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