Isaiah wants to build a new shopping complex. Isaiah is afraid that once news gets out about his plans, the price of the land where he wants to build the shopping complex will increase in price. Isaiah, therefore, hires Landon to purchase the parcels of land for him and to keep the fact that Landon is working for Isaiah a secret. Landon enters into a written contract for the sale of the land with Miriam and does not tell Miriam that he is an agent for anyone else on the deal. Isaiah later refuses to buy the property from Miriam. Is Isaiah obligated to perform the contract that Landon entered into with Miriam?

A. Yes, he is because Landon was acting within the scope of his authority.

B. No, he is not because undisclosed principals are not obligated to perform contracts entered into by their agents.

C. No, he is not because there was no agency relationship between Isaiah and Landon.

D. Yes, he is because Isaiah is a partially-disclosed principal.

Answer rating: 100% (QA)

D Yes he is because there was an undisclosed principal who failed ... View the full answer