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horrorfan [7]
3 years ago
10

True or false?If an agent contracts with a third party without authority from the principal, the is not liable on the contract.

If the third party knows of the existence of a principal, either disclosed or partially disclosed, then the is liable to the third party who relied on the agency status. In this situation, there is a breach of the warranty of authority. If the third party knows that the agent does not have authority, then the agent liable to the third party.
Law
1 answer:
DedPeter [7]3 years ago
5 0

Answer:

true

Explanation:

The true statement if an agent has no actual or apparent authority to act on behalf of a principal but the agent still enters into a contract with a third party

The principal will not be bound except if the contract has been ratified by the principal.

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