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A authorizes B to buy 1,000 bales of cotton on account of A, and to pay for it out of A's moneys…

Illustration (b) to section 204 says that where B buys in A's name without personal liability, "A can revoke B's authority to pay for the cotton". Section 204 protects only…

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A authorizes B to buy 1,000 bales of cotton on account of A, and to pay for it out of A's moneys remaining in B's hands. B buys the cotton in A's name, so as not to make himself personally liable for the price. Can A now revoke B's authority to pay for the cotton?

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Answer and explanation

Correct answer A

Illustration (b) to section 204 says that where B buys in A's name without personal liability, "A can revoke B's authority to pay for the cotton". Section 204 protects only acts and obligations that arise from what the agent has already done; here B has incurred no obligation of his own that needs protection. The seller's claim lies against A as the buyer, so his consent to the revocation is not needed.

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