Question

Anna hired Juan to act as her sales agent in her auto dealership. However, Anna has instructed Juan not to enter into any sales contracts before she has had a chance to review the transaction. However, one day Juan entered into a sales contract with William, without informing Anna first. Has Juan created a contract with William that is binding on Anna in this situation?

A. Yes, Juan did have actual authority to act.

B. Yes, Juan did have express authority to act.

C. Yes, Juan did have implied authority to act.

D. Yes, Juan did have apparent authority to act.

Answer

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