CONTRACT – Contract made in the name of an agent without disclosing any principal – Personal liability of the agent thereto – Whether foreknowledge of existence of a principal exonerates the agent:

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CONTRACT – Contract made in the name of an agent without disclosing any principal – Personal liability of the agent thereto – Whether foreknowledge of existence of a principal exonerates the agent:

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“The short answer to this is that once a person puts himself forward as a contracting party, whether as an agent or a principal, he will continue to be liable even after the discovery of the agency by the other party. The only thing that stops his liability is the clear and unequivocal election by the other contracting party to look to the principal alone. See Skith – Bird v. Blower (1939) 2 All ER 406 as per Luxmoore LJ. Also, in the words of Lord Reid, in Basma v. Meekes (1950) AC 441:- “an agent who contracts in his own name does not cease to be contractually bound because it is proved that the other party knew when the contract was made that he was acting as agent.” Per ESO, J.S.C. in WEST AFRICAN SHIPPING AGENCY (NIG.) LTD V. ALHAJI MUSA KALLA (1978-LCER-1756-SC) at P. 6, Para. E.

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