In Cove Management V

In Cove Management v. AFLAC, Galgano, an independent contractor who solicited insurance business for AFLAC, rented office space from Cove under AFLAC's name. When Galgano defaulted on payments, Cove sued AFLAC contending that Galgano was its agent when he rented the office, so AFLAC was liable. The appeals court held that AFLAC:

A) was not obligated to the lease because real estate deals must be in writing with the principal of the company agreeing to the lease
B) was not obligated to the lease because Galgano did not have universal agent authority to sign a lease to bind AFLAC
C) was obligated on the lease as its employee had apparent authority
D) was not obligated on the lease, but its employee who told Galgano it was ok to enter into such a lease was obligated
E) all of the other choices are incorrect