One who assumes to act as an agent is responsible to third persons as a principal for that person‘s acts in the course of that person’s agency in any of the following cases, and in no others:

Terms Used In North Dakota Code 3-04-02

  • Contract: A legal written agreement that becomes binding when signed.
  • following: when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part. See North Dakota Code 1-01-49
  • Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
  • third persons: includes all who are not parties to the obligation or transaction concerning which the phrase is used. See North Dakota Code 1-01-30
  • written: include "typewriting" and "typewritten" and "printing" and "printed" except in the case of signatures and when the words are used by way of contrast to typewriting and printing. See North Dakota Code 1-01-37

1.    When, with that person’s consent, credit is given to that person personally in a transaction.

2.    When that person enters into a written contract in the name of that person’s principal without a good-faith belief in having the authority to do so.

3.    When that person’s acts are wrongful in their nature.