Business Terms and Jargon Explained

What is Warranty of Authority

This is where there is a contract of agency. It is a promise to whomever the agent enters into contracts with that the agent has the authority to do so. This means that the agent is not liable in law for the contracts to the third party. In the absence of a warranty of authority then the person who held themselves out to be the agent will be liable.

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Term created / updated 2005-10-07 23:28:43

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