BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -n Warranty of the Principal’s Capacity-a warranty imposed by law on the agent so that if the principal injured the third party, the third party could recover from the agent.

Detailed explanation-2: -Breach of warranty of authority is an action available against an agent who misrepresents his or her authority to a third party and as a result of that misrepresentation, the third party enters into a contract and suffers loss.

Detailed explanation-3: -An agent is not generally liable for contracts made; the principal is liable. But the agent will be liable if he is undisclosed or partially disclosed, if the agent lacks authority or exceeds it, or, of course, if the agent entered into the contract in a personal capacity.

Detailed explanation-4: -Principal Liable for Agent’s Misconduct When an agent commits a wrong or tort or fraud while acting within his actual or ostensible authority, the principal is liable for his acts. An agent is also personally liable in this case and can be sued also.

Detailed explanation-5: -Unlike actual authority, a principal can be bound by an agent’s act made with apparent authority even if they explicitly stated that the agent could not do that act.