Identifying the Facts and Issues

OutCreate would be

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principal in the contract. This type of principal

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liable to a third party for contracts made by its agents. In this situation, OutCreate

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liable on that contract.

Assessment question

At trial, Manos claimed that he was an agent for

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and claimed that OutCreate was just another name for

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$.$ Forest Green

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mentioned in the contract and would be

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principal. This type of principal generally

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bound to perform the contract.

Assessment question

Once

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principal$$s identity is revealed, the third party generally

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hold either the principal or the agent liable on the contract. Forest Green is

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and therefore

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perform the contract. Because the undisclosed principal

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the same entity as the disclosed principal, and that undisclosed principal

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perform on the contract, a court likely

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find that Ken Manos is liable on the contract.

Assessment question

What If the Facts Were Different?

Assume that the Elba family looked for landscapers in the phonebook and found Forest Green. When they called the number, Manos answered with the name $$OutCreate$$ and told the Elba family that OutCreate was another business name for Forest Green. Manos still signed the contract as $$Ken Manos, Representative for OutCreate$$ and still had the check made out to him personally.

Under these facts, the landscaper in the contract is

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$.$ Because of the phone conversation between Manos and the Elba family, Forest Green is

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principal. Because of this, Forest Green

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liable on the contract.

Assessment question

And because of the type of agency, Manos

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liable on the contract. Under these facts, the court

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dismiss Manos from the suit.