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An Agent Will Be Liable for Breach of Warranty of Authority

Question 10

Multiple Choice

An agent will be liable for breach of warranty of authority if:

A) the agent accepts commissions from both principal and third party without full disclosure.
B) if there is a clause in the contract between principal and third party that makes it clear that the principal is not bound until the principal approves the contract
C) the agent misrepresents the scope of the agent's authority, and the principal is not bound to the contract with the third party
D) the agent breaches the terms and conditions of the agent's contract with the principal
E) the agent does not make it clear to the third party that the agent is acting in a representative capacity

Correct Answer: