What occurs if an agent acts without authority?

When an agent acts without authority, it primarily results in personal liability for the agent's actions. In such cases, the agent is considered to have stepped outside the bounds of their fiduciary responsibility, and thus, the principal typically does not bear liability for those unauthorized actions. This means that any obligations, damages, or commitments made by the agent in their unauthorized capacity are the agent's sole responsibility.

This scenario stems from the fundamental principles of agency law, which stipulate that for the principal to be liable, the agent must act within the scope of their authority. If the agent exceeds or acts contrary to this authority, they lose the protections that would normally shield them from personal liability—leading to a situation where the agent must answer for their own conduct without recourse to the principal's resources or legal standing.

The potential responses indicate differing circumstances of liability, but option C accurately reflects the situation where the agent has acted outside their granted authority, delineating the clear line of responsibility.