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

Question

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

Quizplus · Accepted Answer

Estoppel is a legal principle that prevents a person from denying or contradicting a previous statement or commitment. Based on Esteban's conduct, Floyd reasonably believed that Glynis had the authority to act on Esteban's behalf. Therefore, Esteban may be estopped from denying that Glynis had authority, even though she did not have actual authority. However, Esteban can still demand repayment directly from Glynis or obtain damages for her misconduct. Repudiation of Glynis's misconduct may also help to avoid liability.

Based on Esteban's Conduct, Floyd Reasonably Believes That Glynis Has