Richard Writes a Letter to Sarah Authorizing Her to Sell

question 77

Multiple Choice

Richard writes a letter to Sarah authorizing her to sell his car and sends a copy of the letter to Timothy, a prospective purchaser. The next day, Richard sends a letter to Sarah revoking her authority, but he fails to notify Timothy. Sarah:

• A) has actual authority to sell the car to Timothy.
• B) has implied authority to sell the car to Timothy.
• C) has apparent authority with respect to Timothy to sell the car.
• D) is empowered under the doctrine of respondeat superior to negotiate the contract.