In 2013 Smith signed a lease with Jones for a certain parcel of land. The lease

Question

In 2013 Smith signed a lease with Jones for a certain parcel of land. The lease stated that the lease was between Jones and WLS Inc. The signature line provided for signature by WLS Inc. by Smith as president. For 4 years the rent was paid on time with a check from WLS Inc. signed by Smith. Four years later Jones sued Smith for rent unpaid.

Is Smith a principal, agent, both or neither?

Is the principal disclosed, partially disclosed or undisclosed?

Is Smith liable for the rent? Why or why not?

Thanks!

Explanation / Answer

Smith is a agent working on behalf of WLS Inc, because the lease deed is signed between jones and WLS Inc, (but signed by Smith as president of WLS inc) , which shows that there is an apparent authority, forcing jones to beleive by virtue that the agent (Smith) is authorised to act

under apparent authority , agent is not liable to the third party for the contract signed by him on behalf of principal.

No, smith is not liabile for any rent .

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