Menard, Inc. v. Dage-MTI, Inc.

President of company did a land deal without board approval, which he needed, and the guy to which he sold the land sued for specific performance and damages.

"The Restatement (Second) of Agency Section 161 provides that an agent's inherent authority 'subjects his principal to liability for acts done on his account which (1) usually accompany or are incidental to transactions which the agent is authorized to conduct if, although they are forbidden by the principal, (2)the other party reasonably believes that the agent is authorized to do them and (3) has no notice that he is not so authorized. . . .'" The trial court held, that the president did not have the express or apparent authority to bind the corporation.

Agency | Authority Doctrines in Contract