Final answer:
Statements by an agent will bind the principal unless the principal is disclosed. The correct answer is: b.
Step-by-step explanation:
Statements by an agent will bind the principal unless the principal is disclosed.In the context of agency law, an agent is someone authorized to act on behalf of another person, known as the principal, to create legal relations with a third party. Statements made by an agent generally bind the principal, because the agent is acting as a representative and extension of the principal within the scope of their authority.
Let's go through the options one by one: a. will not, they were made at the time of performance. This option states that the agent's statements will not bind the principal if they were made at the time of performance. However, this is incorrect because the timing of the agent's statements (at the time of performance) generally does not negate the binding nature of the statements on the principal as long as they are within the authority granted.
b. will not, the principal is undisclosed. This option suggests that the agent's statements will not bind the principal if the principal is undisclosed. This is actually correct in some cases. If the third party does not know that an agent is acting on behalf of a principal, or if the principal's identity is hidden, the agent's statements might not bind the principal in the same way as they would if the principal was known.
In some jurisdictions, the undisclosed principal may be held liable once discovered, but this can be more complex than when dealing with a disclosed principal. c. will, they were made at the time of performance.
Although option 'c' implies that the principal will be bound by statements made at the time of performance, it does not consider the situation of an undisclosed principal, which can change the binding effect. d. will not, the principal is disclosed. Option 'd' is incorrect because if the principal is disclosed, the agent's statements generally will bind the principal, provided the statements were made within the scope of the agent's authority.
The correct answer is: b. will not, the principal is undisclosed. Statements by an agent will bind the principal unless the principal is undisclosed. If the principal's identity is not known by the third party at the time of the agent's statements or contractual commitment, it can affect the liability and the binding nature of the agent's actions on the principal. The correct answer is: b.