You post a notice at school that you will sell your laptop computer for $600. A buyer comes by your room to look at it while you are gone and your roommate sells it for $500, thinking you would be happy with that price, which you did not authorize.
Which of the following statements is/are true?

a) You must accept the deal because your roommate had implied authority.
b) You must accept the deal because people living together have power of attorney.
c) The deal cannot be void because there was no consent.
d) You can accept the deal by express ratification only.
e) None of the above

e) None of the above

Explanation:

Agency refers to a relationship between a principal i.e the person who allows another person i.e the agent to act on his behalf and allow him to do such acts which the principal in the ordinary course himself would.

Agency can be express or implied. In the former case, the agency agreement is executed and terms and conditions between the two parties are specified in written form.

In case of implied agency, the agency is implied from the conduct of both parties i.e their relationship.

Ratification of an agreement or a contract refers to making it valid by formal approval or confirmation of terms by both parties, in the same sense and in the same context.

In the given case, an individual posted a notice for sale of laptop for a certain price. During his absence, the same laptop was sold by his roommate for a lower consideration than specified by the individual.

Herein, the individual did not authorize the roommate to sell the laptop. Thus, the individual may approve i.e ratify the action of roommate expressly, if such a formal agreement exists or via implied ratification wherein the individual accepts the consideration of $500 without objecting to the roommate's action.

answera public company has access to more capital;

answer(d) all of the choices are correct;