What happens when an agent acts without any authority?

When an agent acts without any authority, the principal may not be bound by the agent's actions. In agency law, an agent must have either actual or apparent authority to bind the principal in a contractual relationship. If an agent exceeds the scope of their authority or acts without any authority at all, the agent lacks the power to create legal obligations for the principal. Consequently, any contract or act the agent undertakes in this situation does not impose liability on the principal.

The outcome of an agent lacking authority is that the agent may be held liable for their actions, as they acted outside the bounds of their given authority. The principal is not automatically bound by these unauthorized acts, unless perhaps they subsequently ratify the agent's actions or have provided some form of authorization that could be interpreted as granting authority. This principle ensures that third parties understand that they must deal with agents within the scope of their authority to have contractual arrangements that are valid and enforceable against the principal.