please answer using IRAC method

1. A.D. Moore was the president of Sanger Lumber Company. He was also the president and a large shareholder of Moore & Smith Lumber Company. Moore signed a promissory note for Sanger Lumber Company in the amount of $2,000 payable to Moore & Smith Lumber Company. The note was given for consideration and entered on the Sanger books. When the note became due, Sarah Phillips was the holder of it and presented it for payment to Sanger. Sanger objected that Moore had no authority to sign promissory notes and refused to pay. Phillips sued Sanger. Who wins and why