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

Quizplus · Accepted Answer

Betty's silence in the presence of Ann's claim of agency can be construed as tacit approval or ratification of Ann's authority, making Betty liable for the transactions made by Ann on her behalf.

In the Presence of Betty, Ann Tells Thomas That Ann