WARRANTY SERVICE AUTHORIZATION
COMPREHENSIVE EXAM 2026 QUESTIONS
AND ANSWERS GUARANTEED TO PASS
◉ When does *warranty of authority* apply? Answer: When an *agent
lacks actual or apparent authority* but represents to a *third party* that
they do have such authority.
◉ Does an *agent's statement alone* create *apparent authority*?
Answer: *No*. Apparent authority requires a *manifestation from the
principal*, not the agent.
◉ What happens if there is *no authority* and no ratification by the
principal? Answer: There is *no contract*, and the *agent may be liable*
to the third party for *breach of warranty of authority*.
◉ How can a *warranty of authority* be made? Answer: It can be
*express* ("I have authority") or *implied* ("My principal has asked me
to make this deal").
◉ What are *exceptions* to liability for breach of warranty of authority?
Answer: • *Principal ratifies* the transaction • *Agent disclaims* the
warranty • *Third party knows* the agent lacks authority
COMPREHENSIVE EXAM 2026 QUESTIONS
AND ANSWERS GUARANTEED TO PASS
◉ When does *warranty of authority* apply? Answer: When an *agent
lacks actual or apparent authority* but represents to a *third party* that
they do have such authority.
◉ Does an *agent's statement alone* create *apparent authority*?
Answer: *No*. Apparent authority requires a *manifestation from the
principal*, not the agent.
◉ What happens if there is *no authority* and no ratification by the
principal? Answer: There is *no contract*, and the *agent may be liable*
to the third party for *breach of warranty of authority*.
◉ How can a *warranty of authority* be made? Answer: It can be
*express* ("I have authority") or *implied* ("My principal has asked me
to make this deal").
◉ What are *exceptions* to liability for breach of warranty of authority?
Answer: • *Principal ratifies* the transaction • *Agent disclaims* the
warranty • *Third party knows* the agent lacks authority
