Agency

An agent who signs a document on behalf of their principal without authority is liable as:

AThe agent is never liable for unauthorized acts
BThe agent personally, because they acted without authority✓ Correct
CThe principal, because all agent acts bind the principal
DThe broker, regardless of the agent's authority

Explanation

An agent who acts without actual or apparent authority is personally liable to the third party for breach of the implied warranty of authority. The principal is not bound by unauthorized acts unless they ratify them.

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