Multiple choice

An agent may be liable to a third party when

  1. there is a contract permitting the agent to act on the principal's behalf

  2. the agent exceeds his or her authority

  3. he is acting under the terms of a valid agency agreement

  4. agents will never be liable to third parties
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

(2) An agent may be liable to a third party when he exceeds his or her authority.

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