Based on Bluto's conduct,Cass reasonably believes that Dee has the authority to act on Bluto's behalf even though Dee does not have the actual authority to do so.Cass makes a payment to Dee for Bluto.Dee keeps the money and disappears.Bluto
A)can demand that Cass make a repayment directly to Bluto.
B)can obtain damages from Cass for Dee's misconduct.
C)may be estopped from denying that Dee had authority.
D)must repudiate Dee's misconduct to avoid liability.

Question

Quizplus · Accepted Answer

Cass reasonably believed that Dee had authority to act on Bluto's behalf, and therefore Bluto may be estopped from denying Dee's authority. This means that Bluto cannot now claim that Dee did not have the authority to accept the payment on his behalf. Bluto may not be able to recover the money from Dee, but he also cannot demand repayment directly from Cass or obtain damages from Cass for Dee's misconduct. Bluto must repudiate Dee's misconduct if he wants to avoid liability for it.

Based on Bluto's Conduct,Cass Reasonably Believes That Dee Has the Authority