Question

Hillary tells Iris that she wants to buy Iris's house "on behalf of a party who wishes her identity not to be known." The party is Baker Associates. With Baker's consent, Hillary contracts with Iris on Baker's behalf to buy the house. What is Hillary's liability on this contract?

A. Hillary is liable because Baker is an undisclosed principal.

B. Hillary is liable because Baker is an unidentified principal.

C. Hillary can be liable only if she expressly agreed to be liable.

D. Hillary is liable because Baker is a legally non-existent principal.

Answer

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