Selected Cases by Article & Issues
(1) An agent that acts without authority or exceeding its authority is, failing ratification by the principal, liable for damages that will place the third party in the same position as if the agent had acted with authority and not exceeded its authority.
(2) However, the agent is not liable if the third party knew or ought to have known that the agent had no authority or was exceeding its authority.
|1||Liability of false agent vis-à-vis third party|
|1.1||Covering third party’s expectation or positive interest|
|2||Liability of false agent excluded|
|2.1||Third party´s actual or constructive knowledge of agent´s lack of authority|