Charles states he has authority to contract for Wyatt and that he will be personally liable if he does not in fact have the authority to bind Wyatt. Identify the name and effect of Charles's statement. If Charles enters the contract without making such a statement, is there a way the same effect could result?
Charles's statement is an express warranty of authority. It makes the agent (Charles) liable to the third party if Charles did not, in fact, have authority from Wyatt to act for him. Just by making the contract on behalf of Wyatt, Charles gives an implied warranty that he is authorized to do so. If Charles does not really have authority to bind Wyatt, Charles is liable to the third party for damages unless Wyatt ratifies the contract or the third party knew Charles was unauthorized.
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