Puneet has been buying cars on behalf of "Blair's Used Car Lot" for the last nine years. Every month, he goes to the auction to buy whatever cars he believes will sell the fastest on the lot. This month, Blair warned Puneet that he was having trouble selling the most expensive cars, and that he should consider limiting his buying to cars under $15,000 and call him if he was unsure. Once at the auction, the most beautiful baby blue Rolls Royce went on the block for $50,000 and before he knew it, Puneet had bought it. He was certain that it would sell quickly. After all, who doesn't love a baby blue Rolls Royce?

Which of the following is true?

a.

Blair is not bound by the contract because Puneet is in breach of his agency agreement.

b.

Blair is not bound because he did not ratify the contract.

c.

Puneet will likely be found in breach of his agency contract.

d.

Blair is not bound by the contract because Puneet's authority was restricted