Agent misrepresentation binds the principal when within agency authority; outside authority the principal is not affected. Misrepresentations or frauds committed by an agent while acting in the course of their business have the same effect on agreements with third persons as if made by the principal; such agreements may be voidable at the option of the innocent third party. Conversely, misrepresentations or frauds by an agent in matters outside their authority do not affect the principal, and instruments signed without authority may be void between the principal and the purported contracting third party.