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Penny, acting as an agent for Felipe, enters into a contract with Tanya, but Tanya knows that Penny does not have authority to enter into
Penny, acting as an agent for Felipe, enters into a contract with Tanya, but Tanya knows that Penny does not have authority to enter into contracts on Felipe's behalf. Is Penny liable for making an unauthorized contract?
Multiple Choice
- No, because the agent lacks express authority to enter into the contract.
- Yes, because Penny entered into the contract while acting as an agent.
- No, because Penny lacks implied authority to enter into the contract.
- No, because the third party knows the agent lacks authority.
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