Samantha was the Vice President of Purchasing for Amsterdam Books Inc, a chain of retail bookstores. She hired Anthea as a buyer of children's books for the chain. Storm Coast Books Ltd had never dealt with Amsterdam before. Anthea turned up at their offices, told them she was a buyer for Amsterdam and gave out the business cards that Amsterdam had printed for her. Anthea entered into a contract with Storm Coast Books Ltd to buy 5000 copies of a new adventure book. Unfortunately, Samantha had no authority to hire Anthea. A section in the corporation's bylaws provides that only the president of the corporation can hire buyers. The contract is nevertheless enforceable by Storm Coast Books.
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