Antonio wishes to purchase a painting at auction. He asks his art dealer to attend the auction on his

behalf. Before the auction, Antonio instructs the art dealer of the maximum price he is willing to pay

for the painting.

At the auction, the art dealer purchases the painting, but exceeds the maximum price by 20%.

(a) Explain, with justification, the extent of the art dealer's authority to act on Antonio's behalf. (6)

(b) Explain, with justification, the extent to which Antonio is legally bound to pay the full auction price.