Paula was the principal, sends the bill to Paula, who refuses to pay Ted. Ted sues Paula and Alvin. What are Ted’s rights against Paula and Alvin?
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Paula instructed Alvin, her agent, to purchase a quantity of hides. Alvin ordered the hides from Ted in his own (Alvin’s) name and delivered the hides to Paula. Ted, learning later that Paula was the principal, sends the bill to Paula, who refuses to pay Ted. Ted sues Paula and Alvin. What are Ted’s rights against Paula and Alvin? |
Explanation
Individual A made the purchase for Product H from Individual T by ordering it in Individual A's name in place of the name of Individual P. It paves way for undisclosed principal as Individual T believed that Individual A was the principal. Individual T can recover the price from either Individual P or Individual A. However, it is not possible to get recovery from both of them. If Individual A bought the order in the name of Individual P, who is the actual principal, this would not have been the case. The principal would have been disclosed, and the case would not prevail.
Verified Answer
Individual T has the right to recover the price of the Product H from either Individual P or Individual A on the grounds of an undisclosed principal.
