Dakota Energy Company employs Evan to negotiate the purchase of mineral rights for future mining projects. Evan secretly buys some of the property and sells it to Dakota at a profit. Evan has breachedthe agent’s duty of loyalty. If a principal is disclosed, the agent may be liable to a third party for the principal’s nonperformance of a contract. False John contracts with Kelly to buy a certain number of cattle for Kelly’s Circle K ranch. John makes a deal with Lawson, the owner of a local herd, and makes a down payment. Kelly fails to pay the rest of the price. Lawson sues John for breach of contract. John’s right to hold Kelly liable for any damages that he has to pay is the right ofindemnification. A familiar example of an agent is the owner of a corporation.