Liability of Contracts

In this particular situation the agency is a principal-agent relationship. In this relationship it is to be agreed that the agent will be acting on the behalf of the principal. I would be acting as the principal because I have authorized Delilah to act on my behalf sourcing wood pulp. Delilah would be the agent because she is the person that I have authorized to act on my behalf. Delilah acting on my behalf created binding contracts with the three sources.

The first source, Evon, knew my identity as the principal when contracting with Delilah. Because my identity was known by the third party the liability for agent's contract is disclosed principal. Different from the Evon, Delilah did not disclose my full identity to the next party, Felipe. Felipe knew Delilah was acting on the behalf of a principal, naming this liability for agent's contract a partially disclosed principal. Unlike the other two parties, the third party was not aware that Delilah was acting on the behalf of anyone else. Giorgio, the third party, is involved in a contract that with undisclosed principal liability.

In the disclosed and partially disclosed contract I will be held being that I am the principal, not Delilah. In the undisclosed principal I will still be held liable because she was acting within the scope of her authority. If she has acted out side of her scope, naming herself principal, then she would be liable