When is the Agent Liable

Question

When is the Agent Liable?

Answer 1

An agent can be held liable when she is acting on behalf of an undisclosed principal. As long as the agent had authority to act on behalf of the principal, the third party can hold either the agent or the principal liable if the third party later discovers the person it dealt with was only an agent.

As well, an agent can be held liable when he indicates that he is authorized to act for a principal but is in fact not authorized—regardless of whether or not the agent is honestly mistaken. This would be considered a breach of warranty of authority.