Section codifies case law.

- Rule holding an agent individually responsible when the agent acts for a nonexistent principal was derived from the case law and subsequently included in the statutes. West v. FDIC, 149 Ga. App. 342, 254 S.E.2d 392, aff'd, 244 Ga. 396, 260 S.E.2d 89 (1979).

Nonexistent legal entity can have no agent. Dixie Drive It Yourself Sys. v. Lewis, 78 Ga. App. 236, 50 S.E.2d 843 (1948).

Corporation acting under a trade name is not a nonexistent principal as a matter of law. West v. FDIC, 149 Ga. App. 342, 254 S.E.2d 392, aff'd, 244 Ga. 396, 260 S.E.2d 89 (1979).

Unauthorized foreign corporation.

- Fact that a foreign corporation was unauthorized within the meaning of the Georgia Business Corporation Code (see now O.C.G.A. § 14-2-1501 et seq.) would not mean that the corporate agent was acting for a nonexistent principal. Evans v. Smithdeal, 143 Ga. App. 287, 238 S.E.2d 278 (1977).

If one contracts as agent when in fact one has no principal, one will be personally liable. Dixie Drive It Yourself Sys. v. Lewis, 78 Ga. App. 236, 50 S.E.2d 843 (1948).

One who assumes to act as agent for a nonexistent principal or one having no legal status renders oneself individually liable in contracts so made. Brown-Wright Hotel Supply Corp. v. Bagen, 112 Ga. App. 300, 145 S.E.2d 294 (1965); Don Swann Sales Corp. v. Echols, 160 Ga. App. 539, 287 S.E.2d 577 (1981).

If there was a nonexistent principal within the meaning of this section, the contract is void and the agent is rendered individually liable. Evans v. Smithdeal, 143 Ga. App. 287, 238 S.E.2d 278 (1977).

When the evidence supports a finding that the purported corporation is not a valid corporate entity, there is no doubt that the agent is bound by the agent's purchases on an open account. Don Swann Sales Corp. v. Echols, 160 Ga. App. 539, 287 S.E.2d 577 (1981).

Purported agent liable unless other party agrees to look to somebody else.

- One who professes to contract as agent for another, when one's purported principal is actually nonexistent, may be held personally liable on the contract, unless the other contracting party agrees to look to some other person for performance. Hagan v. Asa G. Candler, Inc., 189 Ga. 250, 5 S.E.2d 739 (1939); Dixie Drive It Yourself Sys. v. Lewis, 78 Ga. App. 236, 50 S.E.2d 843 (1948).

Other party's knowledge of principal's nonexistence.

- One who professes to contract as agent is personally liable on the contract if, unknown to the other party, one's purported principal is actually nonexistent; however, the agent is not liable when the third person has knowledge of the nonexistence of the principal or when there is an agreement or understanding to the contrary. Hagan v. Asa G. Candler, Inc., 59 Ga. App. 587, 1 S.E.2d 693 (1939), aff'd, 189 Ga. 250, 5 S.E.2d 739 (1939).

Contract for rental of two automobiles, signed "Hapeville High School, John G. Lewis, Principal," when both parties knew that the high school had no legal entity, was the individual undertaking of the principal. Dixie Drive It Yourself Sys. v. Lewis, 78 Ga. App. 236, 50 S.E.2d 843 (1948).

Cited in U.S.I.F. Atlanta Corp. v. Hagy, 136 Ga. App. 350, 221 S.E.2d 227 (1975); Hendrix v. Byers Bldg. Supply, Inc., 167 Ga. App. 878, 307 S.E.2d 759 (1983).

Am. Jur. 2d.

- 3 Am. Jur. 2d, Agency, § 277.

C.J.S.

- 2A C.J.S., Agency, § 397.

ALR.

- Liability on the contract of one who without authority assumes to contract for another, 42 A.L.R. 1310; 60 A.L.R. 1348.

Personal liability of one who assumes to contract as agent for a principal who is fictitious or nonexistent, 126 A.L.R. 114.