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

Ewing

Law

9 July, 01:11

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.

+3

Answers (1)

Know the Answer?

Kiana · 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.