Which of the following would a lawyer suggest exemplifies the liability of an agent who acts without authority and contracts with a third party?

Question

Quizplus · Accepted Answer

When an agent acts without authority and contracts with a third party, they are liable to the third party for breach of warranty of authority. This means that the agent is responsible for any damages that the third party may suffer as a result of the unauthorized contract. The principal is not responsible for these damages unless they choose to ratify the contract. The third party is not liable to the principal for breach of warranty of authority, as they were not aware of the lack of authority. The agent cannot hold the principal liable for breach of agency by ratification, as this would require the principal to have ratified the unauthorized contract.

Which of the Following Would a Lawyer Suggest Exemplifies the Liability