Agency disclosure: principal's enforcement of contract is subject to existing agent-third party rights, permitting set-off where applicable. When a person contracts with another without reasonable ground to suspect agency, the principal seeking performance acquires the contract subject to ... Summary
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Agency disclosure: principal's enforcement of contract is subject to existing agent-third party rights, permitting set-off where applicable.
When a person contracts with another without reasonable ground to suspect agency, the principal seeking performance acquires the contract subject to rights and obligations existing between the agent and the third party; consequently, enforcement by the principal must accommodate intervening rights such as a right of set-off held by the third party against the agent.
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