A principal's liability in a contract with a third party may arise from the authority given to the agent to enter into the contract.

Question

Quizplus · Accepted Answer

If an agent acts within the scope of their authority when entering into a contract with a third party, the principal can be held liable for any breaches of the contract. Therefore, the principal's liability in a contract with a third party can arise from the authority given to the agent.

A Principal's Liability in a Contract with a Third Party