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Cook Instructs Chan, Her Agent, to Buy a Van for Her

Question 315

Multiple Choice

Cook instructs Chan, her agent, to buy a van for her business. Chan contracts for a van with a third party, who knows that Chan is an agent. If Cook does not like the van and refuses to pay for it, the seller may sue:


A) Chan because she did not have authority to enter into a final contract without permission
B) Cook because Chan has actual authority to make a contract on behalf of her principal
C) Cook if Chan signed the contract expressly on behalf of Cook; that is, the principal was revealed before the contract was made
D) Cook but only if Chan has apparent authority to enter into the contract
E) no one; there was no valid contract

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