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KillerSteamcar
KillerSteamcar
11.03.2020 • 
Business

Carla was the agent for Newco, a New York company that wanted to relocate its corporate offices to New Jersey. Carla was given the authority to purchase 600 acres of New Jersey farmland, but was not allowed to tell the sellers that she represented Newco. She was only allowed to say that she represented an out- of- state corporation. After the contracts were signed, Newco's board decided not to relocate and wants to rescind the contacts. Which of the following statements is true about the liability of the parties?1. Carla has no personal liability on the contracts because she was acting within the scope of her authority.2. Carla is personally liable on the contracts, but Newco must indemnify her because she was acting within the scope of her authority.3. Newco is liable to the sellers on these contracts because Carla was acting within the scope of her employment.

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