If an agent who has actual authority and receives reimbursement does not tell the third party that he is working in an agency capacity, the principal is still bound.

Question

Quizplus · Accepted Answer

The principal is still bound by the actions of the agent even if the third party was not informed about the agency relationship if the agent has actual authority and receives reimbursement for the transaction. This is known as the doctrine of implied authority.

If an Agent Who Has Actual Authority and Receives Reimbursement