Why is the agent to be held liable on a contract when the existence of the agency arrangement was not disclosed?
a. to ensure that the principle fulfills its obligations under contracts negotiated by authorized agents.
b. to offset the fraud frequently present in this situation
c. because the third party could rely on the reputation of only the agent when entering into the contract
d. so that the outcome in a contract situation is the same as that for a tort
to discourage the use of undisclosed agency arrangements.
This discusses the case of Agent's liability on a contract