Question

Dan, an agent for Eve, signs an agreement with Fred on Eves behalf but neglects to tell Eve that the agreement requires the payment of a certain tax. The government prosecutes Eve for failing to pay the tax. Eve is:

		Liable, because Dan’s knowledge is imputed to Eve.
		Liable, because Fred’s knowledge is imputed to Eve.
		Not liable, because Dan did not tell Eve about the tax.
		Not liable, because Fred did not tell Eve about the tax.

Answer 1

Liable, because Dan’s knowledge is imputed to Eve.

Reason:-

Dan is the agent of Eve. Actions of the agent are to be borne by the principal

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