Agent Authority And Third Party Knowledge
Martha hires Janet as a sales representative, explicitly instructing her that any sale exceeding $10,000 or including a discount greater than 8 percent requires Martha's express approval. Janet subsequently signs a contract with a long-standing customer who is aware of these limitations on Janet's authority. The contract is for $25,000 worth of goods and includes an 11 percent discount. If Janet did not obtain Martha's approval prior to signing, which of the following statements regarding the contract is true?
AJanet is personally liable to the customer for the contract.
BMartha is not obligated to honor the contract.
CJanet has not acted improperly.
DMartha is obligated to honor the contract.
EThe customer has the option to void the contract.