Principal–Agent–Third Party & Termination — KSLU Contract 2 Notes

Principal–Agent–Third Party & Termination

An agent who acts within authority binds the principal; if he exceeds it, the principal is bound only as to the part within authority where severable (S.227). A disclosed principal is directly liable; under the doctrine of the undisclosed principal (S.231–232) the third party, on discovering him, may sue either the agent or the principal. An agent is personally liable where he so agrees, where he acts for a foreign or undisclosed principal, or where the principal cannot be sued. Termination (S.201) occurs by revocation by the principal, renunciation by the agent, completion of the business, death or insanity of either, or the principal’s insolvency — but an agency coupled with an interest (S.202) is irrevocable to the prejudice of that interest.