A principal is not bound in contract with the third party with whom the agent dealt if the agent is
A) within his express authority.
B) within his implied authority.
C) within his apparent authority.
D) outside his authority but the principal ratified it.
E) outside his actual and apparent authority.

Question

Quizplus · Accepted Answer

A principal is not bound by the actions of an agent if the agent acts outside both their actual and apparent authority, as there is no basis for the third party to believe the agent is acting within their authority.

A Principal Is Not Bound in Contract with the Third