Agatha is appointed by Toytoys Led to act as its agent in the purchase of toys, which will b sold through its shops. Agatha is instructed to obtain the consent of the company's board of directors before making any purchase above $10,000. Agatha has undertaken various actions. i Christie, a toy manufacturer, contacts Agatha offering to sell a consignment of toys. Christie is in financial difficulties and, therefore, offers the toys for $30,000, which represents a substantial discount on the normal price, but Christie requires an immed ate decision. Agatha says, 'I don't really have the authority for such a large transaction but the board usually backs my opinion on such matters, especially in an emergency like this.' Agatha, therefore, agrees to buy on behalf of Toytoys. The next day, Christie receives a better offer for the toys from another toy retailer. Christie telephones Agal and says he is withdrawing from the deal. That afternoon, the board of directors of Toytoys decides it wishes to go ahead with the purchase from Christie. ii Agatha is offered toys for $15,00 0 by Dan. Dan knows Agatha does not have the author ity to condude the deal and so suggests that she seek such authority from the board o directors of Toytoys. The next day, Agatha tells Dan that she has been given the neces- sary authority. The deal is concluded. In fact, the meeting of the board of directors had been postponed because of illness, and Agatha, who was concerned about the possibi ity of losing the deal and convinced that the board would give its approval, had decide to lie to Dan. The board of directors later decides it does not wish to proceed with the purchase from Dan