Although Jason Had Participated in the Flower Auction for the Last

question 91

Multiple Choice

Although Jason had participated in the flower auction for the last nine years as an agent for Thos. Holt's Ltd. (Holt) with the authority to buy whatever he felt the store needed, this day he was given express instructions to buy only cut flowers. When flats of young camellia bushes with a rare gold flower were being sold, Jason bought them on behalf of the company. Which of the following is true?

• A) Holt is not bound by the contract because Jason's authority was expressly restricted.
• B) Holt is not bound since Holt didn't ratify the contract.
• C) Holt is not bound by the contract because Jason is in breach of his agency agreement.
• D) Holt is estopped from denying Jason's authority.
• E) The key to determining whether or not Holt is bound by the contract is this: in the circumstances, should the auctioneer have confirmed with Holt the extent of Jason's authority?

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