Without Ted's knowledge, Phil, who frequently purchased lumber on Ted's behalf, purchased a large quantity of plywood from Chris as agent for Ted. Phil later advised Ted of the purchase. If Ted had died, Phil would be liable to Chris on the basis of Phil's implied warranty that he had authority to negotiate the contract on behalf of a principal that existed.

Question

Quizplus · Accepted Answer

Phil, acting as an agent, impliedly warranted that he had the authority to act on behalf of Ted, a principal who existed at the time of the transaction. If Ted had died, Phil would still be liable to Chris for breaching this implied warranty of authority, as his actions suggested he had the authority to bind Ted in the contract.

Without Ted's Knowledge, Phil, Who Frequently Purchased Lumber on Ted's