The principal will be liable on any contract the agent enters into on her behalf as long as one of the types of authority is present
When an agent exceeds the scope of his authority, or has no authority, the agent is liable on the contract - the principal will not be liable unless ratification occurs
- Can the agent be liable to the thrid party f the principal breaches the contract?
- - Fully disclosed - Agent NOT Liable
- - Partially disclosed - Agent Liable, unless the agent and the third party agree otherwise
- - Undisclosed principal - Agent Liable
If agent is liable would be entitled to indemnification from principal as long as agent is acting within his scope of authority