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A business owner tells a supplier that her purchasing manager handles inventory orders. The owner privately tells the manager not to buy more than $5,000 of goods per month. The manager signs a $7,500 ordinary inventory order. The supplier has no notice of the private limit.
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The principal is bound only if the agent personally guaranteed the contract. The principal is bound if the agent acted within actual authority or apparent authority, even if the agent violated an undisclosed private limit. The principal is bound only if the contract was signed in the principal presence. The principal is not bound because the agent violated a private instruction unknown to the supplier.

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