Carl loans Dan $1,500 for Dan's honeymoon.Dan gives Carl his ruby ring as security for the loan and after a year, tells Carl he may as well sell it to recoup the $1,500.When Dan's wife hears of this, she persuades Dan to call Carl and get back the ring.Can Carl sell it anyway?
A) No, Carl's authority has been revoked.
B) Yes, because Carl has an express agency.
C) Yes, because Dan cannot terminate this agency except by discharging the obligation.
D) Yes, because Carl has apparent authority.

Question

Quizplus · Accepted Answer

Dan cannot terminate the agency because the ring was given as security for the loan, and Carl has the right to sell it to recoup the loan amount unless the obligation is discharged.

Carl Loans Dan $1,500 for Dan's Honeymoon