Grant got a job with Ace Computers Co. (Ace) as a salesman. He was given a course in sales by Ace, business cards, and several of the company's order forms and brochures, and he was assigned an area in which he would sell computers door to door on behalf of Ace. Grant would be paid on a commission basis. At his first house, he was so excited by the interest shown that he forgot the explicit instructions he had received-only cash sales permitted. As an agent for Ace, he sold a computer on time to a 70-year-old woman. She was to pay $25 per month for eight years because that was all she could afford. When Brown, Ace's sales manager, heard of the deal, he fired Grant and said Ace would not go through with the contract. However, the old woman liked the computer very much and insisted that Ace provide her with one within the week as required by the contract. Which of the following accurately describes the legal position of the parties?
◦ Grant had implied authority to sell computers on time; selling computers necessitates selling on time, despite the prohibition.
◦ Ace is not bound by the contract because no representations of authority were made by it to the old woman.
◦ Ace would be bound because Grant acted within his apparent authority.
◦ Ace would not be bound because Grant failed to follow the exact instructions he had received.
◦ Brown is personally liable to the old woman because he is the employee of the company who decided not to honour the contract.
Ulysses S. Grant poses at City Point, Virginia, during the siege of Petersburg.
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