breach of warranty of authority

breach of warranty of authority

conduct contrary to the representation that one is an agent for a principal (see agency). Where an agent has contracted as agent (rather than personally), in general he cannot be made personally liable on the contract. An exception to this rule exists, however, where he has made some representation that he has authority when in reality he does not and where that representation is relied on by the other party to the contract. In such a case the agent may be made personally liable for any loss suffered by the other party arising out of the contract.

Collins Dictionary of Law © W.J. Stewart, 2006