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a. |
When an agent makes a contract on behalf of a disclosed principal and within his actual authority, he is not liable to the third party on the contract nor can he sue the third party on it as the agent is not a party to the contract. |
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b. |
If it is expressly provided in the contract with the third party that the agent shall be personally liable to the third party independent of his principal, the third party may sue the agent under the terms of the contract. |
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c. |
As a general rule, an agent is not personally liable in a contract to a third party for failing to carry out a contractual duty owed by his principal to the third party but which has been delegated by his principal to him to perform on the principal's behalf. The third party should proceed against the principal for any loss suffered as a result of the principal's failure to perform the duty. |
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d. |
The agent can be sued by the third party under a contract where the existence of the principal is undisclosed at the time the contract is made by the agent in the agent's own name but in fact on the principal's behalf. |
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e. |
Where an agent, by words or conduct, represents to a third party that he has authority to act on behalf of a principal, and the third party is induced by such representation to enter into a contract with the agent, the agent is deemed to have warranted that the representation is true, and is liable for any loss caused to such third party by a breach of that warranty of authority, even if the agent is under a mistaken belief that he had such authority. |
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f. |
Where a third party suffers any loss or injury caused by the tort (that is, any wrongful act or omission that violates the rights of another) of the agent while acting on behalf of the principal, the agent is personally liable to the third party. The general rule is that the agent cannot escape liability by claiming that he acted under the authority or instructions of the principal. |