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 agrees with Charlie to buy Marisol's bike. Marisol then refuses to sell the bicycle. Marisol claims that she is not bound by the agreement formed by Charlie and Jamal because Charlie is not her agent. Marisol likely is:

a. not bound by the contract because she did not have an agency agreement with Charlie.

b. bound by the contract, under a theory of agency by operation of law.

c. not bound by the contract because of a rescission.

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

Question

Business

Slade Wang

6 November, 11:31

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 agrees with Charlie to buy Marisol's bike. Marisol then refuses to sell the bicycle. Marisol claims that she is not bound by the agreement formed by Charlie and Jamal because Charlie is not her agent. Marisol likely is:

a. not bound by the contract because she did not have an agency agreement with Charlie.

b. bound by the contract, under a theory of agency by operation of law.

c. not bound by the contract because of a rescission.

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

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Answers (1)

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Kennedi Ryan · Answer 1

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

Explanation:

The concept of agency by estoppel is when a principal (Marisol) gives the impression that a third party (Charlie) is acting on their behalf. The third party (Charlie) becomes an agency by estoppel.

Any contract that Charlie enters on behalf of Marisol is binding on her. So the sale of the race bicycle is a contract Marisol should respect.