2. (b) That's probably wrong. In circumstances like this, an agent may also be liable in tort, for Negligence or deceit. Such liability arises if the agent has breached a duty of care owed to the third party. Failing to disclose a lack of authority to enter into a contract for a supposed principal may well amount to a breach of a duty of care.

Another possibility is that an agent who represents that they have authority from a principal when they do not is very likely to be liable for breach of s 18 of the Australian Consumer Law, for their misleading conduct. See section 9 in this module.