im kind of confused about the concept on agency

Tania had apparent authority to buy a car for Sharon, provided the price was less than $10,000. Tania has now entered into an agreement to buy a car, on Sharon's behalf, from Douglas for $15,000.

the answer on the quiz was

Sharon can purchase the car if she chooses to

why isnt the answer Sharon must purchase the car.??

i mean, tania had apparent authority to buy a car and even if tania didn't follow instructions and still bought the car wouldnt sharon still be bound by the deal, so wouldn't she had to purchase the car???

No, the authority was to buy for up to 10K. Sharon is not obligated in any way to purchase the car, but she can purchase it if she wants to.

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I understand your confusion. Let's break down the concept of agency and apparent authority in this scenario.

In the given situation, Tania had apparent authority to buy a car for Sharon, but with a condition - the price had to be less than $10,000. However, Tania went ahead and entered into an agreement with Douglas to buy a car for $15,000, which is above the instructed limit.

Apparent authority means that a third party reasonably believes an agent has the authority to act on behalf of the principal (in this case, Sharon) based on the principal's conduct or the statements of the principal. So, Douglas reasonably believed that Tania had the authority to buy the car from him for $15,000.

Now, as for your question about whether Sharon must purchase the car, the answer "Sharon can purchase the car if she chooses to" is correct. The reason is that Tania exceeded her authority by going beyond the specified price limit. In this case, Sharon is not obligated to purchase the car because the agreement made by Tania on her behalf was outside the bounds of her authority.

Although Tania may have had apparent authority, her actions went against the specific instructions given by Sharon. So, Sharon is not bound by the deal made by Tania in this situation. Sharon has the choice to either accept the agreement and purchase the car or reject it.

To summarize, apparent authority is based on a third party's reasonable belief that an agent has the authority to act on behalf of the principal. But when the agent exceeds their authority or acts outside the bounds of their instructions, the principal is not obligated to adhere to the agreement. Sharon can choose whether or not to purchase the car in this case.