Sherwood entered into a contract to buy some real estate from Idris Real Property Inc.on behalf of Mento Corp, a major developer.Sherwood told Idris that he was the vice-president of acquisitions at Mento.In fact, Sherwood is not affiliated with Mento in any way and has no authority to act on behalf of Mento.Sherwood is not liable to Idris under the contract, but would be liable to Idris for breach of warranty of authority.

Question

Quizplus · Accepted Answer

Sherwood misrepresented his authority to act on behalf of Mento Corp. Since he had no actual authority, he is not liable under the contract itself but is liable for breach of warranty of authority, as he falsely claimed to have the power to bind Mento Corp.

Sherwood Entered into a Contract to Buy Some Real Estate