Explain the term Civil Liability in Contract

Question

Explain the term Civil Liability in Contract?

Answer 1

A corporation is liable for acts of its agents under the ordinary rules of agency. The indoor management rule is a specialized version of the apparent authority rule of agency law: in the absence of notice of irregularity or suspicious circumstances, everything in the operation of a corporation that appears to be properly done may be relied on by an outsider and will bind the company. However, a contracting third party who knows about a particular restriction will be bound by it.