14. Newco is a real estate development company. It engages brokers to act on its behalf in acquiring real estate at attractive prices. The brokers are instructed to act as if they are the buyers and not to disclose Newco's identity. In fact they (the brokers) execute the contracts as the "buyer". All transactions entered into by the brokers are specifically authorized by Newco. Assuming there is a breach of one of these contracts executed by a broker, which of the following is correct? Newco is bound by the contract because of the broker's apparent authority. The broker is not liable on the contract because he is acting with the express authority of Newco. a. b. C. d. The broker is liable for a claim brought against him by Newco on the basis that Newco does not want to accept that particular parcel. The broker will be held liable on the purchase contract since Newco is an undisclosed principal, unknown to the third-party seller.

14. Newco is a real estate development company. It engages brokers to act on its behalf in acquiring real estate at attractive prices. The brokers are instructed to act as if they are the buyers and not to disclose Newco's identity. In fact they (the brokers) execute the contracts as the "buyer". All transactions entered into by the brokers are specifically authorized by Newco. Assuming ther? is a breach of one of these contracts executed by a broker, which of the following is correct? a. Newco is bound by the contract because of the broker's apparent authority. b. The broker is not liable on the contract because he is acting with the express authority of Newco. c. The broker is liable for a claim brought against him by Newco on the basis that Newco does not want to accept that particular parcel. d. The broker will be held liable on the purchase contract since Newco is an undisclosed principal, unknown to the third-party seller