Question: Theodore, as a treasurer of Kelt Corp., had the duty to invest corporate earnings as he deemed best for the company. When Kelt Corp. went public, the new board decided that such investment decisions would be made by a committee of the officers. If Theodore thereafter unilaterally contracted to purchase investment securities with corporate earnings as he had done many times before, such contract would be valid:
1) since Theodore would have express authority.
2) since Theodore had implied authority.
3) under apparent authority if the seller knew Theodore's past transactions.
4) because of ratification if the board did not know of his actions.
Please describe the answer.