Question: For several years, Albert acted as a collection agent for Paulette. Recently, Paulette revoked Alberts authority to collect payments from customers. However, neither Paulette nor

For several years, Albert acted as a collection agent for Paulette. Recently, Paulette revoked Albert’s authority to collect payments from customers. However, neither Paulette nor Albert told any customers of Albert’s termination. Yesterday, Theresa, one of Paulette’s customers, paid Albert the money owed to Paulette. Albert never gave this money to Paulette. Is Theresa liable to pay Paulette? Why or why not?

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This is a classic case of apparent authority In this case Paulette did indeed termi... View full answer

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