A principal may be liable to a third person for an agent's unauthorized contracts.

Name: A principal may be liable to a third person for an agent's unauthorized contracts.
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Question

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A principal is responsible for the actions of their agent within the scope of their authority. If an agent enters into a contract without the principal's authorization but with the appearance of authority, the principal may be held liable to a third party who relied on that appearance of authority.

A Principal May Be Liable to a Third Person for an Agent's