Penn commits a tort while acting in the interest of her undisclosed principal. Who is liable? The principal, the agent, or both?

English · Middle School · Thu Feb 04 2021

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In the scenario where Penn, the agent, commits a tort while acting in the interest of her undisclosed principal, the question of liability can be complex and may depend on specifics of the case and the jurisdiction. Generally, both Penn (the agent) and the undisclosed principal may be held liable for the tort.

1. Agent's Liability: As a general rule, agents are liable for their own acts. Even if Penn was acting on behalf of a principal, she is personally responsible for any wrongful acts (torts) she commits. In this case, because Penn committed the tort, she can be held liable.

2. Principal's Liability: In the case of an undisclosed principal, the principal can also be held liable for the torts committed by an agent if those acts were within the scope of the agency or if the principal authorized or ratified the tortious act. The idea here is that the principal should not be able to hide behind the agent to avoid responsibility for actions taken on their behalf.

3. Joint and Several Liability: Depending on the laws of the jurisdiction, Penn and her principal might be jointly and severally liable for the tort. This means that the injured party could seek full compensation from either Penn or the principal, or a combination of both.

In summary, both the agent and the undisclosed principal could potentially be liable for the tort committed by the agent in the interest of the principal.

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