4. Steve is Jason\'s agent, and it\'s within Steve\'s authority as Jason\'s agen

Question

4. Steve is Jason's agent, and it's within Steve's authority as Jason's agent to purchase homes on Jason's behalf. Steve contracts with Albert to buy Albert's house for Jason. Steve, however, doesn't tell Albert that he's buying the house on Jason's behalf or that he's acting for another individual. Under the terms of the contract, which of the following statements is true?

A. Only Jason can be held liable.
B. Both Steve and Jason can be held liable.

C. Neither Steve nor Jason can be held liable.

D. Only Steve can be held liable.

Explanation / Answer

D. Even though Steve is appointment as the agent of Jason. It's his primary duty to disclose all the facts about purchase before buying the house. Here Steve didn't do that, it is the breach of rule. Hence only Steve can be held liable.

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