Under what circumstances will a court find that a corporation is bound by a contract entered into by an agent of the corporation?

Question

Quizplus · Accepted Answer

A court will find that a corporation is bound by a contract entered into by an agent of the corporation if the agent was acting with actual or apparent authority. This means the agent was either genuinely authorized by the corporation (actual authority) or acted in a way that a reasonable third party would believe they were authorized (apparent authority), regardless of the actual authorization.

Under What Circumstances Will a Court Find That a Corporation