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

question 165

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? (He = third party)

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

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Definitions:

Deviates

Individuals or behaviors that depart from the accepted standards or norms in a society or community.

Abnormality

A deviation from the average or norm, often used in the context of behaviors or conditions that are outside societal expectations or statistical averages.

Acceptable in a Culture

Behaviors, practices, or beliefs that are considered appropriate and conform to the norms within a specific culture.

Old Junk

Derogatory term for objects that are considered useless or of little value, often accumulated over time and cluttering space.