Which statement best exemplifies the liability of an agent who acts without authority and contracts with a third party?

Question

Quizplus · Accepted Answer

The agent who acts without authority and enters into a contract with a third party is liable to that third party for breach of warranty of authority. This means the agent implied they had the authority to act on behalf of the principal, and when it turns out they did not, they can be held responsible for misleading the third party.

Which Statement Best Exemplifies the Liability of an Agent Who