Sara pointed Chris as his manager for the duration of a new residential subdivision development program. Chris was authorized to transact all affairs relating to the subdivision. During the construction of the subdivision, Chris made the decision to use funds specified for the subdivision for an office-space project that Chris alone has been interested in completing. Sara got very angry when he learned of Chris's actions. Sara terminated Chris's agency. Chris insists that the agency cannot be terminated in his manner. Who is correct, Saraor Chris?
Sara also tells Chris that Chris alone is liable for any remaining payments on the office-space project. Chris insists that because he was acting as an agent when started that project, Sara is liable to the third party involved in the office-space project. Who is correct, Sara or Chris?