Assignment task:
Paul's Plaids ("PP"), a Canadian flannel shirt manufacturer, hired Rosie to act as its agent in Australia. Under Rosie's agreement with PP, she is only authorized to enter into contracts with a value of Cdn $50,000 or less. PP has not done anything to tell the customers about this limit so potential customers are unaware of this restriction. Rosie negotiates a contract for a sale of Cdn $100,000 worth of plaid shirts with a Sydney department store, and signs the contract on behalf of PP. Is PP bound by the contract to sell $100,000 worth of plaid shirts? Question options: a. Yes, because Rosie had actual authority to enter into the contract. b. Yes, because Rosie showed apparent authority to enter into the contract and PP did nothing to make the customer aware of her actual authority. c. No, because Rosie was not authorized to enter into contracts for this amount. d. No, because Rosie did not have actual or apparent authority.