A person who undertakes to make a contract on behalf of another person gives an implied warranty that he is in fact authorized to make the contract on behalf of the person he purports to represent.

Question

Quizplus · Accepted Answer

When a person acts on behalf of another in making a contract, there is an implied warranty of authority, meaning they are representing that they have the actual authority to bind the person or entity they claim to represent in the contract. If they do not have such authority, they may be personally liable for any resulting breach of this warranty.

A Person Who Undertakes to Make a Contract on Behalf