This question requires a complete I.R.A.C. Analysis. (Issue Rule Analysis Conclusion)

Kraft Foods, Inc. needed additional space to store some of its products. June Martin, a vice president of Kraft Foods contacted Warehousing, Inc. whether they had enough space to store some of Krafts products. They responded that they did not have enough space, but could probably lease more space that they can then use to store Krafts products. Martin said that would be fine, and to let her know when they had leased the space. About a week later, the CEO of Warehousing called Martin and said they had found some space they could rent, but the landlord wanted a guarantee that if Warehousing defaults on the lease, Kraft Foods would be liable for the remainder of the leases term. Martin agreed to that and then went to the meeting with the landlord Space, Inc. & the CEO of Warehousing. At that meeting Warehousing and Space entered into a five year lease for $10,000 per month. Martin then signed the guarantee as June Martin, V.P. of Wholesale Flour Division on behalf of Kraft Foods, Inc. (you may assume the signature is proper).

At the time of the signing, Martins job description was: Vice President of Wholesale Flour Sales for Kraft Foods, Inc. Her duties included establishing warehousing and distribution for the Pillsbury flour that was sold by his division. She was in charge of the Wholesale Flour Division and had authority to make determinations with respect to warehousing, the terms of warehousing, and the financial undertakings that Pillsbury would effect to accomplish the warehousing and distribution of the product.

At the end of the first year, Warehousing went bankrupt and was discharged in bankruptcy of its obligation to pay the remainder of the lease, which amounted to $480,000. Space Inc. has sued Kraft Foods, Inc. for the $480,000 remaining on the lease. Kraft claims they are not liable because Martin did not have the authority to guarantee leases with their subcontractors (Warehousing in this case).

Who will win and why?