Bobby Wants to Purchase a Lot Next Door to Sarah's

Multiple Choice

Bobby wants to purchase a lot next door to Sarah's home that is owned by Sarah.Bobby knows Sarah will not sell the lot to him because of his barking dogs that she dislikes.Bobby agrees with Susie that Susie will purchase the lot from Sarah for him.Susie and Sarah reach an agreement and enter into a contract whereby Sarah is to sell the lot to Susie for a price within the scope of Susie's authority.Susie tells Sarah nothing about her plan to later transfer the lot to Bobby.Before title to the lot is transferred to Susie,Bobby tells Susie that he no longer wants the lot.Susie tells Sarah about Bobby.Sarah tells Susie that as far as she is concerned,Susie has bought a lot.Sarah says that she plans to move anyway and really does not care whether Susie or Bobby end up with the lot.She just wants her money and is unconcerned about barking dogs.They will be the next owner's problem.Which of the following is true regarding whether Susie is personally bound on the contract with Sarah?

A) Susie is not personally bound because she was acting on behalf of Bobby.
B) Susie is personally bound unless she can establish that Sarah would not have sold her the lot if she had known that Bobby was involved; and the contract is, therefore, void.
C) Susie is personally bound unless she can establish that Bobby has the funds with which to pay Sarah.
D) Susie is not personally bound unless Bobby has legally filed for bankruptcy.
E) Susie is personally bound.