Reference no: EM132403949

Meredith authorized Henry to purchase used instruments for Meredith's music shop. Whenever customers brought in used instruments to sell, Henry would evaluate the instrument, negotiate a price, and make the purchase. Occasionally, customers wanted to sell instruments that were so large that it was impracticable to bring the instrument in for an appraisal. Henry often made house calls to these customers. Henry would typically evaluate the instrument, negotiate with the customer, and if they agreed to his price, return later with the funds. In the time that Henry worked for Meredith, he purchased several pianos, upright bases, and even a harp in this manner. All of this was done with Meredith's actual authority. One day, Henry was called out to evaluate an antique bassoon that was too fragile to move. Henry negotiated with the owner, and the owner agreed to sell the instrument for a specified sum. When Henry returned to Meredith's shop to retrieve the money, Meredith refused to honor the agreement.

Is Meredith liable to the third party on the contract entered into by Henry?