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A restaurant owner told her catering manager, "You may contract for ordinary weekend catering staff when we have more than three events." The manager signed a staffing contract for a weekend with five events.
Which statement best explains why the restaurant is bound?

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Actual authority depends only on the third party's belief that the agent has power to act. Actual authority exists whenever the agent uses a company email account. Actual authority depends on the principal's manifestations to the agent that reasonably cause the agent to believe she may act. Actual authority can be created only by a notarized board resolution.

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