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business law

posted by on .

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???

  • business law - ,

    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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