CPA · Question 11 · Area II: Business Law
Peyton is the manager of a retail store owned by Corp X. Corp X explicitly instructed Peyton not to hire any vendors without corporate approval. Despite this, Peyton hired a cleaning service to clean the store, signing the contract as 'Peyton, Manager for Corp X.' The cleaning service was unaware of the restriction on Peyton's authority. Is Corp X liable for the contract?
Answer options:
Yes, because Peyton had apparent authority.
Yes, because Peyton had actual implied authority.
No, because Peyton lacked actual authority.
No, because the contract was for services, not goods.
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