4.11 Both Principal and Agent Sued-Agency or Authority Denied is a legal action taken when a principal and agent are both sued, but the agency or authority who granted the agency agreement is denying any responsibility or involvement. In such cases, the principal and agent may have to take civil action against the agency or authority for violating the terms of the agreement. This can include seeking damages for breach of contract, or seeking injunctive relief to enforce the contract. There are two types of 4.11 Both Principal and Agent Sued-Agency or Authority Denied: a contract-based action and a tort-based action. In a contract-based action, the principal and agent allege that the agency or authority violated the terms of the agreement, and seek damages or other remedies as a result. In a tort-based action, the principal and agent allege that the agency or authority’s actions were negligent or intentional, and seek damages as a result.