Any restrictions in the employment contract between principal and agent on an agent's authority will be binding on a third party.

Question

Quizplus · Accepted Answer

Restrictions in the employment contract between principal and agent are not binding on a third party unless the third party is aware of them. The principal is bound by the acts of the agent as long as the agent acts within the scope of apparent authority, regardless of any private agreements to the contrary of which the third party has no knowledge.

Any Restrictions in the Employment Contract Between Principal and Agent