While an agent is travelling in Northern Ontario, his principal dies. Before he is informed of this, but after the death, the agent signs a contract within his authority with a third party. Which of the following statements is true?
A) The principal's estate must honour the contract.
B) The agent becomes liable on the contract.
C) The principal is in breach of the agency agreement.
D) The agent is in breach of the agency agreement.
E) The third party can sue the agent for breach of warranty of authority.
Correct Answer:
Verified
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