Emilia is an employee of Smart Co., where she works as a Project Manager. Her duties include leading a team of engineers in the development of component parts for clients in the aviation industry. Her current task is to identify the specific metal matrix composites (MMCs) that will meet the needs of a promising new product.

Emilia meets with a potential supplier of MMCs, Supplier Co. Emilia knows of Smart Co.'s internal policy that any purchases above $200,000 must be authorized by a special procurement committee. Even though the procurement committee has not met to discuss anything related to Supplier Co., Emilia is excited about this potential new supply source. She tells Supplier Co. that she is in charge of this project and has been sent by Smart Co "to secure the MMC that will drive production of our new device for at least the next 8 to 9 months." Supplier Co. responds that its MMCs match her specifications perfectly and that it hopes they "can strike a deal before Emilia leaves today." Emilia does not tell Supplier Co. about the internal procurement policy of Smart Co. or correct Supplier Co.'s assumptions in any way.

If Emilia and Supplier Co indeed strike a deal and then Supplier Co. tries to collect payment, which of the following best describes why Smart Co. will be bound by a valid contract? [Select the one best answer]

• A.

Smart Co. will be bound by a valid contract because Emilia likely had actual authority.

• B.

Smart Co. will be bound by a valid contract because of the "mirror image" rule.

• C.

Smart Co. will be bound by a valid contract because, well, why not?

• D.

Smart Co. will be bound by a valid contract because Emilia likely had apparent authority.