Question
10. Paula Enterprises hires Able to act as its agent to purchase a one-thousand acre tract of land from Thompson for $1,000 per acre. Paula
10. Paula Enterprises hires Able to act as its agent to purchase a one-thousand acre tract of land from Thompson for $1,000 per acre. Paula Enterprises does not wish Thompson to know that it is the principal or that Able is its agent. Paula wants the land for a new country housing development, and fears that Thompson may not sell the land for that purpose or may demand a premium price. Able makes the contract for the purchase, signing only his name as purchaser and not disclosing to Thompson the agency relationship. The closing and transfer of the deed are to take place on September 1. Assume the contract is enforceable, who is liable on this contract?
Select one:
a. Paula only
b. Able only
c. Neither Paula nor Able because Able did not disclose the agency to Thompson.
d. Paula and Able
e. None of the above.
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