Rupert, an agent for Star Productions, Inc., enters into an unauthorized contract with Trucking Corporation purportedly on behalf of Star, which refuses to perform. Rupert is liable
A) for breach of contract to Star and Trucking.
B) for misrepresentation to Star only.
C) for misrepresentation to Trucking only.
D) to no one.

Question

Quizplus · Accepted Answer

Rupert is liable for misrepresentation to Trucking because he entered into a contract without authority, misleading Trucking into believing he had the power to bind Star Productions.

Rupert, an Agent for Star Productions, Inc