Opinion ID: 31525
Heading Depth: 2
Heading Rank: 1

Heading: Agency Immunity

Text: 8 It is well established that an agent acting for a disclosed principal 2 is not liable for claims arising out of contracts executed by the agent on behalf of its principal. 3 It is equally evident, however, that the parties to a contract may alter this general rule by agreement so that the agent will be liable on the contract. 4 The mere fact that an agency relationship exists does not preclude the imposition of personal liability on an express contract with a third party, even though the contract is primarily for the benefit of the principal. United States v. Gissel, 353 F.Supp. 768, 779 (S.D.Texas, 1973), aff'd, 493 F.2d 27 (5th Cir.1974). Where upon a construction of the contract it is determined that the agent has substituted his own responsibility for that of his principal, or has pledged his own responsibility in addition to that of his principal, he will be bound accordingly. His liability is not predicated upon his agency, but upon his contract obligations. Vincent Murphy Chevrolet Co. v. Auto Auction, Inc., 413 S.W.2d 474, 477-478 (Tex.Civ.App.1967) (quoting American Nat'l Bank v. American Loan & Mortgage Co., 228 S.W. 169 (Tex. Comm'n App.1921), and citing numerous Texas Court of Civil Appeals cases). See Eppler, Guerin & Turner, Inc. v. Kasmir, 685 S.W.2d 737, 738 (Tex. App.1985); Richards Group, Inc. v. Stone Container Corp., 1997 WL 78916  (Tex. App.1997)(not designated for publication); 3 Tex. Jur.3d § 186.