Liability for the Unauthorized Torts of Agents

No other part of the law of principal and agent is in such intolerable confusion as that which concerns the nature and extent of the liability of the principal for the tortious actions of the agent when done without either actual or apparent authority from the principal. There can be no question as to the liability of the principal for the agent's tort that has been actually authorized or ratified, nor should there be any difficulty in holding the principal liable for such unauthorized torts of his agent as were committed under circumstances that induce a reasonable belief on- the part of the third party dealing with the agent that the principal had authorized the act in question. That is to say, the principal is estopped to deny responsibility for tortious acts done by the agent within the apparent scope of his authority. On this theory the principal becomes liable for a false representation made by his agent in negotiating a sale of his principal's property.

The principal may not have authorized such a misrepresentation, and may be personally wholly innocent of it; yet, having given to the agent authority to make a sale of the property the purchaser would have a reasonable ground for believing that the agent was also authorized to make such usual representations with reference to it as might be necessary to procure its sale.