What constitutes unauthorized acts by an agent?

Prepare for the Champions Law of Agency Test. Use flashcards and multiple choice questions with hints and explanations to boost readiness. Get exam-ready!

An agent operates under a specific scope of authority granted by the principal. When an agent takes actions outside this defined authority, these acts are deemed unauthorized. Such unauthorized acts can lead to liability for the agent, as they do not have the principal's consent to engage in those activities. For instance, if an agent makes a contract without the principal’s approval or exceeds the limits of their delegated powers, it could result in legal consequences and financial repercussions.

The other options describe scenarios that typically do not constitute unauthorized acts. Actions within the scope of granted authority are expected and valid. Negotiating property prices usually falls under the agent's duties as long as it aligns with the authority provided. Communicating with another party's agent is standard practice in many negotiations and does not necessarily indicate unauthorized action. Understanding the boundaries of authority is crucial in agency law, as it protects both the agent and the principal from unintended liabilities.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy