Breach of warranty of authority - what does a solicitor warrant in the course of a conveyancing transaction?

Authors: Mark Brookes, Partner, Greg Stirling, Senior Associate & Madelyne Inch, Solicitor

Breach of warranty of authority is an action available against an agent who misrepresents his or her authority to a third party and as a result of that misrepresentation, the third party enters into a contract and suffers loss. The rationale for the action lies in the fact that a third party who is induced to act and has given consideration in reliance on the agent’s implied promise (that he or she has authority), has no cause of action against the principal if they did in fact not give authority to the agent.

Breach of warranty of authority claims can arise against solicitors in mortgage fraud cases.

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