An agent who exceeds the authority granted by the principal:
Correct Answer
B) May be personally liable
When an agent acts beyond their authority, they may become personally liable for any damages that result. The principal is not bound by unauthorized acts unless they ratify them.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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