Dan, an agent for Ramona, sees what he thinks is a good deal for Ramona. Without asking whether he has authority to negotiate the deal, Dan enters into a contract on Ramona's behalf. Ramona says later that she isn't interested. Is Ramona liable on the contract? Is Dan liable on the contract? Explain
If Dan has express, implied, or apparent authority, Ramona would be liable on the contract. If the third party has not changed position at the time that Ramona repudiates the contract, she may be able to minimize any damage claim. If the contract is within the scope of his authority and the principal is disclosed, Dan is not liable unless he personally guaranteed Ramona's performance. The reason is that an agent is not personally intended as a party to a contract. If the contract is outside his scope of authority, Dan has breached the warranty of authority and is liable.
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