If an agent has no authority but nevertheless contracts with a third party, the principal cannot normally be held liable on the contract.

Name: If an agent has no authority but nevertheless contracts with a third party, the principal cannot normally be held liable on the contract.
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Question

If an agent has no authority but nevertheless contracts with a third party, the principal cannot normally be held liable on the contract.​

Quizplus · Accepted Answer

The principal cannot normally be held liable for contracts made by an agent without authority, as the principal did not grant the agent the power to act on their behalf in that instance.

If an Agent Has No Authority but Nevertheless Contracts with a Third