A principal who authorizes an agent to enter into a contract with a third party is liable on the contract.

Question

Quizplus · Accepted Answer

This is the principle of agency law known as the doctrine of respondeat superior, which holds the principal responsible for the acts of their agent performed within the scope of their authority. The third party can hold the principal liable for any contractual obligations agreed upon by the authorized agent.

A Principal Who Authorizes an Agent to Enter into a Contract