What will happen if an agent acts outside the scope of his authority?

When an agent acts outside the scope of their authority, they typically create a situation where they can be held personally liable for any resulting damages or consequences. This is because agents are expected to act within the parameters of authority granted by the principal, and any actions taken beyond that can lead to a breach of duty.

In the context of agency law, when an agent exceeds their authority and enters into agreements or makes commitments that the principal has not sanctioned, the principal is not typically bound by those actions. Consequently, the agent bears the responsibility for their unauthorized actions and may owe compensation for any losses that the principal incurs as a result. This liability emphasizes the importance of agents understanding their scope of authority and acting accordingly.

Considering the options provided, the choice indicating that the agent will be liable to the principal aligns with these legal principles, highlighting both the agent's responsibility to adhere to their designated authority and the repercussions for failing to do so. This understanding is crucial for ensuring that agents operate within the boundaries set by their principals, thereby maintaining a framework of accountability in agency relationships.