Property Ownership

In South Dakota, a 'purchase and sale agreement' signed by an agent on behalf of an undisclosed principal is:

AVoid because the principal was not identified
BGenerally binding on the disclosed agent and binding on the undisclosed principal when disclosed✓ Correct
COnly valid for 30 days without principal disclosure
DAutomatically invalidated under SDREC rules

Explanation

Contracts made by agents for undisclosed principals can be binding on the principal when they are disclosed. The agent may also be personally liable until the principal is disclosed and ratifies the contract.

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