A principal is not liable for an agent's fraud unless the agent has the apparent authority to commit torts.

Question

Quizplus · Accepted Answer

The principal can be liable for agent's fraud even if the agent did not have actual authority to commit torts, but only if the agent had apparent authority, which means that the principal's conduct led a third party to reasonably believe that the agent had authority to act on behalf of the principal.

A Principal Is Not Liable for an Agent's Fraud Unless