[Anonymous]

Part agrees to act as Young’s agent to sell Young’s land. Part is instructed to disclose that he is acting as an agent but not to disclose Young’s identity. Part contracts with Rice for Rice to purchase the land. After Rice discovers Young’s identity, Young refuses to fulfill the contract.Against whom does Rice have a cause of action?

Part Young

A: Yes Yes

B: Yes No

C: No Yes

D: No No

A: In the case of a partially-disclosed agency relationship, as is the case here, the third party (Rice) has the right to sue the only person whose identity he knew at the time of the transaction (the agent, Part), and can also sue the principal (Young) if Rice later learns Young’s identity.

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What basis does Rice have against either Part or Young? He was going to buy land from Part, the agent. After finding out Part represents Young, Rice no longer wishes to buy the land. That’s fine. I don’t see how Young or Part did anything wrong.

[LongShot]

“Part contracts with Rice for Rice to purchase the land.” When Young refused to sell, Rice would have the reason for action of breach of contract. Because the contract was originally with Part, Rice would be able to take action against Part. As a partially disclosed principal, Rice would also be able to take action against Young. It wasn't that Rice refused to buy from Young, it was that Young refused to sell to Rice after his identity was known.

FAR - 75
AUD - 72; 87
REG - 64; 74; 84
BEC - 88

Done!!

[Anonymous]

Thanks man. I read the question wrong.

[Author]

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