Alice Able, on behalf of Pix Corp., entered into a contract with Sky Corp. by which Sky agreed to sell computer equipment to Pix. Able disclosed to Sky that she was acting on behalf of Pix. However, Able had exceeded her actual authority by entering into the contract with Sky. If Pix does not want to honor the contract, it will nonetheless be held liable if Sky can prove that
A. Able had apparent authority to bind Pix.
B. Able believed she was acting within the scope of her authority.
C. Able was an employee of Pix and not an independent contractor.
D. The agency relationship between Pix and Able was formalized in a signed writing.
Answer: A. Able had apparent authority to bind Pix.
Business
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