Bob,owner of a small business,goes to Sally to negotiate the purchase of some inventory.Bob has Paul with him,who he introduces to Sally as "Paul,my purchasing manager." A short while later,Bob says he must leave and says,"You two can conclude this deal." Paul signs a contract to buy 2,500 units of her product.Paul tells Bob,and Bob then says,"You know you weren't supposed to buy more than 1,000 units!" Assume that Bob,in fact,had instructed Paul,prior to meeting with Sally,not to buy more than 1,000 units.Can Sally hold Bob to the contract?

Question

Quizplus · Accepted Answer

Bob's introduction of Paul as the purchasing manager and his statement to Sally that they could conclude the deal gave Paul apparent authority to act on Bob's behalf, making the contract binding.

Bob,owner of a Small Business,goes to Sally to Negotiate the Purchase