Edward writes to Judy,who is in the business of purchasing goods for others,telling her to purchase certain goods and ship them to him.Before answering Edward's letter,Judy does as directed and charges the goods to Edward.Judy was not authorized to do this because an agency relationship did not yet exist between Edward and Judy.

Question

Quizplus · Accepted Answer

The scenario described in the question implies that an agency relationship already exists between Edward and Judy since he specifically directed her to purchase certain goods for him. Therefore, Judy was authorized to charge the goods to Edward.

Edward Writes to Judy,who Is in the Business of Purchasing