First Principles of Business Law

7. An agent's relations with third parties

7.4. Liability for a warranty of authority

Read the facts below, and then answer the questions.

A goes into a shop where C sells antiques. He sees an old French cabinet for sale that, although he is not interested in buying for himself, he thinks his friend B, a collector of such items, may wish to own. Although A has not been given any authority by B to represent him, A identifies himself to C as B's agent, says that he is buying on behalf of B rather than for himself, and buys the cabinet for $2,000. However B repudiates the purchase. When the cabinet is resold by C to another buyer, it only fetches $1,000. C wishes to sue A for the loss of $1,000 that he has suffered.

1. Is A contractually liable to C for saying that he is B's agent when in fact he is not?

2. Is there any other legal basis on which A might be legally liable to C?