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A consigns goods to B for sale and gives him instructions not to sell under a fixed price. C, being…

This reproduces section 237’s illustration (a). Consigning goods for sale gives B apparent authority to sell, and C does not know A’s private minimum-price restriction. A is…

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A consigns goods to B for sale and gives him instructions not to sell under a fixed price. C, being ignorant of the instructions given to B, enters into a contract with B to buy the goods at a price lower than the reserved price:

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Correct answer B

This reproduces section 237’s illustration (a). Consigning goods for sale gives B apparent authority to sell, and C does not know A’s private minimum-price restriction. A is bound to C by the sale at the lower price; A’s separate remedies against B for disobeying instructions do not defeat the innocent third party’s contract.

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