Problem
Phil works for a friend who runs a catering business. Phil has the authority to sign contracts to purchase materials needed in the business. Phil typically buys produce from a local organic farmer for cash. One day when Phil is in the office, the farmer comes in and introduces him to his future son-in-law, Billy. He tells Phil that Billy just graduated from the local university with a double degree in agriculture and business and is going to make a great partner in the farm. Phil sits and talks with the two of them for a while and hears plans of how Billy is going to grow the business through new technology that will increase production, and how he will improve the quality of the produce you receive from the farm. The next Friday, on the day Phil usually meets with the farmer to place orders for the next week, Billy arrives. He writes down the order, takes the cash, and leaves. A few hours later, the farmer shows up, apologizes for being late, and wants to talk about Phil's order. Phil tells him that he already gave the order, and the payment, to Billy. The farmer says that Billy is a lying cheat, that he didn't even graduate, and that he broke up with the farmer's daughter.
Discuss whether or not Phil placed a valid order with Billy and should receive the goods without having to pay the farmer again.