Young was a purchasing agent for Wilson, a sole proprietor. Young had the express authority to place purchase orders with Wilson's suppliers. Young conducted business through the mail and had little contact with Wilson. Young placed an order with Vanguard, Inc., on Wilson's behalf after Wilson was declared incompetent in a judicial proceeding. Young was aware of Wilson's incapacity. The applicable law is based on the Restatement (Second) of the Law of Agency. With regard to the contract with Vanguard, Wilson (or Wilson's legal representative) will
A. Not be liable because Vanguard dealt only with Young.
B. Not be liable because Young did not have authority to enter into the contract.
C. Be liable because Vanguard was unaware of Wilson's incapacity.
D. Be liable because Young acted with express authority.
Answer: B. Not be liable because Young did not have authority to enter into the contract.
Business
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