What is the effect of a contract executed by an agent without authority to sell?

Expert Solution

When an agent in a contract works exceedingly in such a manner that the act can be seperated between agent and principal, in such a case agent is supposed to be working within his boundary. If at any time, notice given or obtained by agent, then if such is given or obtained in due course of business from principal will face same legal consequences as if it is obtained by principal. When an agent makes frauds or misrepresentations in ordianary course of business, then it is supposed to be acted by principal. Thus the principal is not liable for the acts of authority to sell unless he, in his own intention, or willfully allows the agent to do so for making false statement of his authority to sell on his behalf. The other factor when principal may not be liable is when an agent acts on behalf of the knowledge of his principal makes a false statement which shows that he has authority to sell.

ekkarill92 answered 1 year ago

What are two ways in which the authority of an agent can be increased or expanded?

  1. How do apparent (ostensible) authority and actual authority differ? What effect does this have on...

  1. How do apparent (ostensible) authority and actual authority differ? What effect does this have on a corporation’s liability? See 7.18.   In Freeman v Lockyer [1964] 2 QB 480 (upheld by the Australian High Court in Crabtree-Vickers Pty Ltd v Australian Direct Advertising & Addressing Co Pty Ltd (1975) 133 CLR 72), the difference between actual and ostensible authority was discussed: Actual authority is a legal relationship between the principal and an agent, created by an agreement between themselves, of...

There are 7 different ways a principal can create authority for its agent true or false?

What is authority? What is the difference between formal and informal authority? What is the difference...

What is authority? What is the difference between formal and informal authority? What is the difference between centralized and decentralized authority? Give an example of how authority works in an organization with which you are familiar, and explain whether or not it is effective.

What is the level of authority and the scope of authority of the Centers for Disease...

What is the level of authority and the scope of authority of the Centers for Disease Control and Prevention (CDC)?

What is the level of authority and the scope of authority of the US Food and...

What is the level of authority and the scope of authority of the US Food and Drug administration?

Veronica breaches a contract to sell Will her house. What sort of legal redress will not...

Veronica breaches a contract to sell Will her house. What sort of legal redress will not be available to Will? Expectancy damages. Reliance damages. Punitive damages. Specific performance.

What do you understand by capacity to contract? What is the effect of any agreement made...

What do you understand by capacity to contract? What is the effect of any agreement made by persons not qualified to contract?

P Company enters into a forward contract to sell foreign currency. At the contract date, the...

P Company enters into a forward contract to sell foreign currency. At the contract date, the forward rate is $1.20 and the spot rate is $1.24. BRIEFLY explain why this may not appear to be logical (and it doesn't), and why would P do this anyway.

On Elements of contract offer accept consideration mutual assent & legal capacity legal purpose executed classification...

On Elements of contract offer accept consideration mutual assent & legal capacity legal purpose executed classification of contracts type of obigatin: 1. bilateral 2. unilateral Method of creaction: 1.____________ 2. ___________ 3. ____________ Type of Form: 1. ____________ 2. ____________ Timing: 1._____________ 2. ____________ Enforceability: 1.___________ 2. ____________

Question