True or false? If an agent contracts with a third party without authority from the principal, the is not liable on the contract. If the third party knows of the existence of a principal, either disclosed or partially disclosed, then the is liable to the third party who relied on the agency status. In this situation, there is a breach of the warranty of authority. If the third party knows that the agent does not have authority, then the agent liable to the third party.

Question

Law

Jessie Gillespie

12 May, 17:43

True or false? If an agent contracts with a third party without authority from the principal, the is not liable on the contract. If the third party knows of the existence of a principal, either disclosed or partially disclosed, then the is liable to the third party who relied on the agency status. In this situation, there is a breach of the warranty of authority. If the third party knows that the agent does not have authority, then the agent liable to the third party.

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Buffie · Answer 1

true

Explanation:

The true statement if an agent has no actual or apparent authority to act on behalf of a principal but the agent still enters into a contract with a third party

The principal will not be bound except if the contract has been ratified by the principal.