In the presence of Betty, Ann tells Thomas that Ann is Betty's agent. In reality, Ann has no authority. Betty hears the statement, but she says nothing. In reliance, Thomas ships goods to Betty on Ann's order. Betty is liable even though no actual authority existed.

Question

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Betty's silence can be seen as a form of consent or acquiescence, creating apparent authority for Ann, making Betty liable for Thomas's reliance on Ann's statement.

In the Presence of Betty, Ann Tells Thomas That Ann