Q.

P appointed A, his agent for the purpose of selling the former’s car for P500,000.00. A sold the car in his name to B. After delivery, it was found out that the car has hidden defects which rendered the car unfit for the purpose of B. Can B file an action against P even if A acted in his own name?

A. No, because the legal principle than becomes applicable is caveat emptor.
B. Yes, because while the agent acted in his own name but the agency involves a thing belonging to the principal.
C. No, since in the law on agency, the Rule is that if the agent acted in his name, the principal is bound to the third person and the third person does not become bound to the principal.
D. No, because the contract is already perfected and executed.
Answer» B. Yes, because while the agent acted in his own name but the agency involves a thing belonging to the principal.
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