A principal is not bound in contract with the third party with whom the agent dealt if the agent is

Question

Quizplus · Accepted Answer

If the agent is outside her actual and apparent authority, the principal is not bound by the contract with the third party. Actual authority is the authority the principal expressly or impliedly gives to the agent, while apparent authority is the authority that the principal appears to have given to the agent. If the agent is acting outside their actual or apparent authority, the principal is not bound unless they ratify the contract after the fact.

A Principal Is Not Bound in Contract with the Third