Hana indicates that she is acting as an agent on behalf of an unidentified client-In-Flight Service Inc.-when she enters into a contract with Jet Airlines. Liability to the airline for nonperformance of the contract may be imposed on

A) none of the choices.
B) Hana and In-Flight.
C) Hana only.
D) In-Flight only.

Question

Emily Ratchford · Accepted Answer

Final Answer : B, Explanation :  When an agent enters into a contract on behalf of a disclosed principal, both the agent and the principal can be held liable for nonperformance, especially if the agent did not act within the scope of their authority or if the contract specifies joint liability. Since Hana indicated she is acting on behalf of In-Flight Service Inc., both can be held liable.

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