An agent will be relieved from liability for representations in excess of the agent's authority if the:
A) agent hired subagents to do some of his work.
B) third party knows that the agent is acting in excess of his authority.
C) principal does not ratify the act.
D) act was undertaken with a good intent.

Question

Quizplus · Accepted Answer

Liability is imposed on an agent who has exceeded his authority on the basis of an implied warranty of authority. The intent, knowledge, and good faith of the agent are immaterial in deciding whether the implied warranty of authority applies. Knowledge on the part of the third person that the agent is not authorized to make the guaranty relieves the agent of liability.

An Agent Will Be Relieved from Liability for Representations in Excess