A principal is not liable to a third party for any contract made by the agent acting outside the scope of his or her authority.

Name: A principal is not liable to a third party for any contract made by the agent acting outside the scope of his or her authority.
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Question

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A principal is generally not liable for contracts made by an agent acting outside their authority, as the agent exceeds their power, unless the principal ratifies the contract or the third party reasonably believes the agent had authority.

A Principal Is Not Liable to a Third Party for Any