Question

Charlie tells Jamal that Marisol has agreed to allow him to sell her racing bicycle. Marisol is present at the time, hears the conversation, and says nothing. Jamal wants to buy a bicycle like Marisol’s, so he agrees withCharlie to buy Marisol’s bike. Marisol then refuses to sell the bicycle. Marisol claims that she is not bound bythe agreement formed by Charlie and Jamal because Charlie is not her agent. Marisol isa. not bound by the contract because she did not have an agency agreement with Charlie.b. not bound by the contract because of a rescission.c. bound by the contract, under a theory of agency by operation of law.d. bound by the contract, under a theory of agency by estoppel

Answer 1

Answer:

d. bound by the contract, under a theory of agency by estoppel

Explanation:

Marisol is bound by the contract because during the negotiation Charlie and Jamal, he created an appearance that will make Jamal believe that Charlie was his agent, he did not counter the claim that the bicycle was up for sale. Under the theory of agency by estoppel, a contract exist and is binding on a principal when he or she creates the appearance of an agency even though it actually does not exist. The action of Marisol created the impression that Charlie is his agent even though he actually is not so the contract is binding on him to sell the bicycle to Jamal.