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Charlie tells Jamal that Marisol has agreed to allow him to sell her racing bicycle. Marisol is present at the time, hears the conversation, and says nothing. Jamal wants to buy a bicycle like Marisol’s, so he agrees with Charlie to buy Marisol’s bike. Marisol then refuses to sell the bicycle. Marisol claims that she is not bound by the agreement formed by Charlie and Jamal because Charlie is not her agent. Marisol is:

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Answer and Explanation: From the given case/scenario, we can state that Marisol is bound by the contract, i.e. under the theory of agency given by estoppel . The concept of agency given by estoppel tends to arise when one individual acts in way that other individuals believe that another individual usually a third party is mostly authorized to proceed on her/his behalf and thus enters into the transaction with this third party.

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