A third person who deals with a person claiming to be an agent has the right to rely on the statements made by the agent concerning the extent of the agent's authority.

Question

Quizplus · Accepted Answer

A third party must verify the agent's authority directly with the principal, as relying solely on the agent's statements about their own authority can lead to issues if the agent is acting beyond their actual authority.

A Third Person Who Deals with a Person Claiming to Be