Multiple Choice
Philip accompanied his boss Roger to a party where several of his boss's clients were present. Philip was discussing a contract with Salisa that he knew his Roger wanted to close the deal on. Philip started discussing the contract with Salisa. Roger was within earshot and nodded at Philip and Salisa as they were discussing the deal but did not know the details being discussed. Salisa takes Roger's nod as a sign that Philip has the authority to contract. Salisa later signed a contract, but for a much different amount than Roger wanted. Roger would like to rescind the contract on the theory that Philip had not authority to enter into the agreement. Can Roger do so?
A) No, Roger created an expressed agency by allowing Philip to come to the party.
B) No, Roger created an agency by executive authority by nodding at Salisa and Philip.
C) No, Roger created an apparent agency by allowing Philip to negotiate the contract.
D) No, Roger allowed an agency by ratification to exist by allowing Philip to discuss details of the contract.
E) Yes, Philip had not authority
Correct Answer:

Verified
Correct Answer:
Verified
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