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Sam Hires Joe to Negotiate and Sign a Contract with Ken

Question 40

Multiple Choice

Sam hires Joe to negotiate and sign a contract with Ken on Sam's behalf. Which of the following is true?


A) If Joe acts outside his express authority and negotiates and signs the contract with Ken, Sam may not be a party to that contract.
B) If Joe acts outside his implied and express authority, Sam will owe him for his services.
C) If Joe acts within his apparent authority, but outside his express or implied authority, Sam will be bound by the contract, but may sue Joe for breach of his agency contract.
D) If Joe acts outside express, implied, and apparent authority, Sam is not bound by the contract, even if he ratifies the contract.
E) If Joe acts outside his express, implied, and apparent authority, he could be sued by Sam, but not by Ken, because he has no contractual relationship with Ken.

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