Food Corp. owned a restaurant called The Ambers. The corporation's president, T.J. Jones, hired a contractor to make repairs at the restaurant, signing the contract, "T.J. Jones for The Ambers." Two invoices for restaurant repairs were paid by Food Corp. with corporate checks. Upon presenting the final invoice, the contractor was told that it would not be paid. The contractor sued Food Corp. Which of the following statements is correct regarding the liability of Food Corp.?
A. It is not liable because Jones is liable.
B. It is not liable because the corporation was an undisclosed principal.
C. It is liable because Jones is not liable.
D. It is liable because Jones had authority to make the contract.
Answer: D. It is liable because Jones had authority to make the contract.
Business
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