Without Ted's knowledge, Phil, who frequently purchased lumber on Ted's behalf, purchased a large quantity of plywood from Chris as agent for Ted. Phil later advised Ted of the purchase. Ted is bound by the contract made by Phil, because Phil had apparent authority to purchase the lumber on Ted's behalf.

Question

Quizplus · Accepted Answer

Phil had apparent authority because his frequent purchases of lumber on Ted's behalf led Chris to reasonably believe that Phil was authorized to act for Ted, binding Ted to the contract despite Ted's lack of knowledge about this specific transaction.

Without Ted's Knowledge, Phil, Who Frequently Purchased Lumber on Ted's