Misrepresentations by an agent made with the intent to deceive a third person:
A) will make the agent liable to the third person.
B) will absolve the principal of any liabilities toward the third person.
C) will make the third person liable to the principle.
D) will make the principal liable to the agent and the third person.

Question

Quizplus · Accepted Answer

Misrepresentations by an agent made with the intent to deceive will also make the agent liable to the third person. A person who is induced to enter a contract by the misrepresentation of an agent has the same remedies as if he had contracted with any person who made a misrepresentation. If the misrepresentation is considered to be a warranty or guaranty, the principal is liable for damages when the product or service is not as represented.

Misrepresentations by an Agent Made with the Intent to Deceive