Yet pockets of something like strict liability remain. In general, an agent is not personally liable on contracts he has signed on behalf of a principal.Even when the doctrine of respondeat superior is inapplicable, an employer may be liable for its negligence in the hiring or supervision of an employee. If the agent breaches his or her duties, the principal can sue the agent for either breach of contract or in tort. They must fall within his or her actual or apparent authority. Therefore, in most instances, a principal is liable for the agent's actions.