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 operating outside of their actual and apparent authority, then the principal is not bound in contract with the third party. This means that the agent acted beyond their power and the principal did not give them the authority to act in such a manner. As a result, the principal cannot be held responsible for any actions or promises made by the agent.

A Principal Is Not Bound in Contract with the Third