Thorp was a purchasing agent for Ogden, a sole proprietor, and had the express authority to place purchase orMODULE 32 AGENCY 839 ders with Ogden’s suppliers. Thorp placed an order with Datz, Inc. on Ogden’s behalf after Ogden was declared incompetent in a judicial proceeding. Thorp was aware of Ogden’s incapacity. Which of the following statements is correct concerning Ogden’s liability to Datz?

a. Ogden will be liable because Datz was not informed of Ogden’s incapacity.

b. Ogden will be liable because Thorp acted with express authority.

c. Ogden will not be liable because Thorp’s agency ended when Ogden was declared incompetent.

d. Ogden will not be liable because Ogden was a nondisclosed principal.