If an agent is liable for fraudulent misrepresentation in making a contract,the third party may rescind the contract.And if the agent was acting within his apparent authority,the third party may sue the principal as well as the agent for

Question

Quizplus · Accepted Answer

The best choice is the tort of deceit, as fraudulent misrepresentation is a type of deceit. Option A, conspiracy to defraud, requires the agent and principal to have acted in collusion, which is not necessarily the case here. Option B, warranty of authority, is not applicable in this situation, as the agent made a misrepresentation rather than a warranty. Option C, breach of contract, would only be applicable if the contract was not performable due to the misrepresentation, which is not specified in the question. Option D, agency negligence, is not applicable as the agent acted intentionally, not negligently.

If an Agent Is Liable for Fraudulent Misrepresentation in Making