Sam Hires Joe to Negotiate and Sign a Contract with Ken

question 8

Multiple Choice

Sam hires Joe to negotiate and sign a contract with Ken on Sam's behalf. Which of the following is true?

• A) If Joe acts outside his express authority and negotiates and signs the contract with Ken, Sam may not be a party to that contract.
• B) If Joe acts outside his implied and express authority, Sam will owe him for his services.
• C) If Joe acts within his apparent authority, but outside his express or implied authority, Sam will be bound by the contract, but may sue Joe for breach of his agency contract.
• D) If Joe acts outside express, implied, and apparent authority, Sam is not bound by the contract, even if he ratifies the contract.
• E) If Joe acts outside his express, implied, and apparent authority, he could be sued by Sam, but not by Ken, because he has no contractual relationship with Ken.