The other factor that determines whether an agent can be held liable on a contract is whether the agent had the authority to act. If someone poses as an agent and is without$$express authority,$$implied authority, or$$apparent authority, the party who might have been the principal is not liable to a third party. In that case, the person posing as an agent is liable.

Question: In which situation does an agent have the least exposure to liability?

Group of answer choices

Partially Disclosed or Unidentified principal

Fully disclosed principal

Undisclosed principal

An agent$$s liability exposure is the same, regardless of the degree of disclosure.

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