Tom runs a pet store. He employs Gerry to work in his shop on weekends. He tells Gerry that he is not to interact with customers, and that he should focus on ensuring the shop is clean and the shelves are stocked. On a particularly busy Saturday, a customer asks Gerry for assistance, and Gerry sells a fish tank for $300 instead of the true price of $3,000. The tank is yet to be delivered. Is Tom bound by the contract with the customer?
Choose the best answer.
Group of answer choices
No, because Tom told Gerry that he was not to interact with customers.
Yes, because Gerry had implied actual authority to enter into the contract on Tom’s behalf.
Yes, because Gerry had apparent/ostensible authority to enter into the contract on Tom’s behalf.
No, because Gerry had neither actual nor apparent/ostensible authority to enter into the contract on Tom’s behalf.
