An agent contracted with a third party on behalf of a principal,but went beyond both his actual and apparent authority.The third party was never paid.Which of the following indicates the legal position of the third party?

Question

Quizplus · Accepted Answer

The third party can successfully sue the agent for breach of warranty of authority, which means that the agent made an implied warranty of his authority, and the third party relied on that warranty to his detriment. If the principal fails to ratify the contract, the third party can sue the agent for damages. The principal is not liable because the agent went beyond his actual and apparent authority. Option A is incorrect because the principal is only liable for the actions of his agent if the agent acted within his actual or apparent authority. Option C is incorrect because the third party can still sue the agent for breach of warranty of authority. Option D is incorrect because the third party cannot ratify the deal on behalf of the principal. Option E is incorrect because the tort of nuisance is not applicable in this case.

An Agent Contracted with a Third Party on Behalf of a Principal,but