An Agent Contracted with a Third Party on Behalf of a Principal

question 29

Multiple Choice

An agent contracted with a third party on behalf of a principal, but went beyond both his actual and apparent authority. The third party was never paid. Which of the following indicates the legal position of the third party?

• A) He can successfully sue the principal because the principal is always liable for the actions of his agent.
• B) He can successfully sue the agent for breach of warranty of authority if the principal fails to ratify the contract.
• C) Since the agent had no authority, the third party has no remedy against anyone.
• D) The third party can ratify the deal and force the principal to go through with it.
• E) He can sue the agent for the tort of nuisance.