Ann, in the presence of Betty, 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

Quizplus · Accepted Answer

Ann made a false statement of agency in the presence of Betty, which creates apparent authority. Thomas relied on this apparent authority and shipped goods to Betty on Ann's order. Therefore, Betty is liable for this transaction even though no actual authority existed.

Ann, in the Presence of Betty, Tells Thomas That Ann