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 2 years ago

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