A principal's liability in a contract with a third party may depend on the authority given to the agent to act on be?half of the principal.

Question

Quizplus · Accepted Answer

The authority given to an agent to act on behalf of the principal determines the principal's liability in a contract with a third party. If the agent exceeds their authority, the principal may not be held liable for the contract.

A Principal's Liability in a Contract with a Third Party