Exam 29: Relationship With Third Parties

Under the Third Restatement, an agent representing an undisclosed principal is discharged from liability if the third party:

No apparent authority exists where the third party knows that the agent has no actual authority.

The power of an agent is her ability to change the legal status of her principal.

A principal may be liable where his agent sells liquor to an underage person even though the principal did not authorize the act.