The agent will be liable for breach of warranty when they act beyond the limits of express authority, not only to the principle but potentially also to the third party. The agent will incur no liability under the contact as long as they act within the limits of their authority. However, if an agent enters in to a contract without discussing the existence of a principle, then the agent may be held accountable and would therefore be liable. An agent will also be held liable when they act on their own behalf, even though claiming to act on behalf of a principle (Lawteacher.net, 2018).