Question: Agency Formation. Pete Gaffrey is a well-known, wealthy financier living in the city of Takima. Alan Winter, Gaffrey's friend, tells Til Borge that he (Winter) is Gaffrey's agent for the purchase of rare coins. Winter even shows Borge a local newspaper clipping mentioning Gaffrey's interest in coin collecting. Borge, knowing of Winter's friendship with Gaffrey, contracts with Winter to sell to Gaffrey a rare coin valued at $25,000. Winter takes the coin and disappears with it.
On the date of contract payment, Borge seeks to collect from Gaffrey, claiming that Winter's agency made Gaffrey liable. Gaffrey does not deny that Winter was a friend, but he claims that Winter was never his agent. Discuss fully whether an agency was in existence at the time the contract for the rare coin was made.