White v. Thomas

White (defendant) authorized his employee Simpson to bid up to $250,000 at auction for a property, giving her a blank check for the deposit but no authority to sell any of it; Simpson overbid at $327,500 and then, to cover her mistake, negotiated to sell part of the tract to the Thomases (plaintiffs), allegedly telling them she had a power of attorney, which they never verified with White. White completed the auction purchase but immediately repudiated Simpson's unauthorized sale to the Thomases, who sued for specific performance; the chancery court found the Thomases reasonably relied on Simpson's apparent authority and that it would be inequitable to let White disavow the sale after ratifying the purchase, and White appealed.

Whether a principal is bound by a purported agent's own assertions about the existence or scope of her authority, absent corroborating evidence.