What happens if an agent misrepresents information to a third party?

When an agent misrepresents information to a third party, the agent may face legal repercussions for misrepresentation. This is because agents are held to a standard of honesty and integrity when representing their principals. If the agent knowingly provides false information or fails to disclose pertinent facts, they can be held liable for any resulting harm to the third party.

The legal principles surrounding agency law recognize the importance of trust in these relationships. The agent's actions, particularly in the context of misrepresentation, can lead to serious consequences, including civil liability for damages caused by the misleading information. Therefore, it is critical for agents to exercise due diligence and ensure that their representations are accurate to avoid legal repercussions.

Although there can be situations where both the principal might also be held responsible under certain doctrines like vicarious liability, the focus of this question is on the consequences specifically faced by the agent for their actions regarding misrepresentation.