2. Ivan had participated in an early American antique auction for the last eight years as an agent for Calvin Melnick Ltd. (Melnick), an antique dealer. Ivan had always had the authority to buy whatever he felt Melnick needed. Today, however, he was given express instructions to buy only antique tables. When a beautiful old painting was being auctioned Ivan bought it on behalf of Melnick. Which of the following is false?

A. Melnick is estopped from denying Ivan's authority.

B. Melnick is not bound by the contract, because Ivan's authority was expressly restricted.

C. The key to determining whether or not Melnick is bound by the contract is this: in the circumstances, should the auctioneer have been suspicious about the extent of Ivan's authority?

D. Melnick is bound even if it doesn't ratify the contract.

E. Melnick is bound by the contract, but Ivan is in breach of his agency agreement.