Thorp was a purchasing agent for Ogden, a sole proprietor,
and had the express authority to place purchase orders 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.
b.
c.

Ogden will be liable because Datz was not informed of
Ogden’s incapacity.Ogden will be liable because Thorp acted with express
authority.Ogden will not be liable because Thorp’s agency
ended when Ogden was declared incompetent.Ogden will not be liable because Ogden was a nondisclosed
principal.