Newsome Enterprises Ltd. hired Joe as its purchasing agent. Joe was given the authority to purchase up to $20,000 of inventory. He discovered inventory at 50% off the normal cost so purchased $15,000. Is Newsome Enterprises Ltd. bound by Joe's agreement?
A) No, it is not bound, and Joe is liable as it exceeded his authority.
B) It can be bound if it ratifies the contract.
C) Yes, it is bound.
D) None of the responses are correct
Correct Answer:
Verified
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