The limitation on alice''s authority

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Pete Principal tells Alice, his sales agent, that under no circumstances does she have authority to make any warranties covering goods she sells for Pete. No third party ever learns about Pete's limitation on Alice's authority. Then Alice goes out and makes the forbidden warranties in a sale to Tom Third. The warranties Alice makes are customary in the trade, Tom knows this, and Tom knows nothing about the limitation on Alice's authority. Did Alice have implied authority to bind Pete here? Why or why not? What about apparent authority? Why or why not 

Reference no: EM13189483

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