Harris Is a Purchasing Agent for Elkin,a Sole Proprietor

Harris is a purchasing agent for Elkin,a sole proprietor.Harris has the express authority to place purchase orders with Elkin's suppliers.Harris typically conducts business through the mail and has very little contact with Elkin.Elkin was incapacitated by a stroke and was declared incompetent in a judicial proceeding.Subsequently,Harris placed an order with Ajax,Inc.on behalf of Elkin.Neither Ajax nor Harris was aware of Elkin's incapacity.With regard to the contract with Ajax,Elkin (or Elkin's legal representative) will:

A) not be liable because Harris was without authority to enter into the contract.
B) not be liable provided that Harris had placed orders with Ajax in the past.
C) be liable because Harris was acting within the scope of Harris' authority.
D) be liable because Ajax was unaware of Elkin's incapacity.

Correct Answer:

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