MN Bar Practice Questions - Minnesota Bar Examination Exam

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An agent acting within the scope of actual authority enters a contract on behalf of a disclosed principal. Who is bound to the third party?

The disclosed principal, because an agent with authority binds the principal on contracts with third parties The agent personally only Neither the agent nor the principal Only the third party

Correct Answer:

The disclosed principal, because an agent with authority binds the principal on contracts with third parties

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