Since principals may sometimes be responsible for the torts of their agents, let's assume that before Goober and the little girl's family litigate, they try to negotiate a settlement agreement.

An attorney representing Goober offers the little girl's family $100,000 for the accident and the family accepts, will the attorney be liable for that settlement contract?

A: Yes, agents will be liable for contracts they enter into on behalf of a principal.

B: No, if Goober gave authority to the attorney to reach that agreement.

C: It depends whether or not the attorney disclosed that he was working for Goober.