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WAEC Commerce 1991 (August) Question 94

Question 94

Law of Agency

Who is liable for the contracts entered into by the agent on behalf of his principal? The

  1. A.agent
  2. B.principal
  3. C.agent and the principal
  4. D.third party
  5. E.lawyer who drew up the agreement
Show the answer and explanation

Answer: B (principal)

Explanation

An agent acting within his authority binds the principal, who is liable.