Contract Liability of Agents and Principals

aq$.$contract.liab$\mathrm{.}001\_2-18$

$130.$ Maco Corp. develops shopping centers and regularly engages real estate brokers to act on its behalf in acquiring parcels of land. The brokers are authorized to enter into such contracts but are instructed to do so in their own names without disclosing Maco's identity or Maco's relationship to the transaction. If a broker enters into a contract with a seller on Maco's behalf,

A$.$ Maco will be bound by the contract because of the broker's apparent authority.

B$.$ The broker will not be personally bound by the contract because the broker has express authority to act.

C$.$ Maco will not be liable for any negligent acts of the broker committed while acting on Maco's behalf.

D$.$ The broker will have the same authority as if Maco's identity had been disclosed.