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Bolt Corp. dismissed Ace as its general sales agent and notified all of Ace's previously assigned sales territory, had never dealt with Ace. Young knew
Bolt Corp. dismissed Ace as its general sales agent and notified all of Ace's previously assigned sales territory, had never dealt with Ace. Young knew of Ace as a result of various business contracts. After his dismissal, Ace sold Young goods, to be delivered by Bolt, and received from Young a cash deposit for of the purchase price. I was not unusual for an agent in Ace's previous position to receive cash deposits. In an action by Young against Bolt on the sales contract, Young will
A Lose, because Ace lacked any implied authority to make the contract.
B Lose, because Ace lacked any express authority to make the contract.
C Win, because Bolt's notice was inadequate to terminate Ace's apparent authority.
D Win, because a principal is an insurer of an agent's acts.
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