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7 The Agent’s Liability for Breach of Warranty of Authority

From: Agency: Law and Principles (3rd Edition)

Roderick Munday

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2022. All Rights Reserved.date: 01 July 2022

Breach of warranty of authority — Creation of agency — Principal’s liabilities

This chapter looks at ways of engaging an agent’s liability on his warrant of authority. An action for breach of warranty of authority will lie whenever the ‘agent’, no matter how innocently, represents to a third party that he has authority to act on behalf of a principal and the third party, relying upon that representation, acts in a manner in which he would not otherwise have done had the representation not been made. The agent will be taken to have warranted the truth of his assertion and will be liable for the loss occasioned to the third party by this misrepresentation of authority. The agent may be acting under an existing agency agreement and misrepresent the extent of their authority, or he might not be an agent at all. There will, however, be exceptional situations in which the agent will not be held liable.

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