In a totally disclosed agency, if the agent acts within their authority, who is liable for the contract?

In a totally disclosed agency, when the agent acts within their authority, the principal is liable for the contract. This is because the agent is acting on behalf of the principal, and the third party is aware of the principal's existence. The agent serves as a representative and is executing the principal’s instructions, which places the legal responsibility for the contract squarely with the principal.

This relationship is central to agency law, as the purpose of having an agent is to allow the principal to engage in transactions without having to be directly involved. Consequently, when the agent acts within the boundaries of their assigned authority, any obligations or liabilities arising from the contract are appropriately attributed to the principal, not the agent.

Thus, in cases where the agent is acting properly within their designated power, it reinforces the principal's accountability in fulfilling the terms of the contract established with the third party.