First Principles of Business Law

3. Obtaining authority to act as an agent

3.2. Express authority

Read the facts below, and then answer the questions.

A, an art collector in Melbourne, knows that a particular painting is being sold by auction in Brisbane. She writes to B, a friend of hers, saying: "I want to acquire the Gerhardt landscape which is being auctioned in Brisbane next Thursday. Please will you go and bid for it on my behalf. I am prepared to pay a maximum of $50,000." At the auction B bids on behalf of A for the Grehardt landscape until the price reaches $50,000 but it is sold to someone else for $90,000. The very next painting to be auctioned is a portrait by Gerhardt. It attracts less interest and, thinking A would want to own it, B bids for it and buys it on behalf of A for $40,000.

1. In these circumstances, does B have express authority from A to bid up to $50,000 for the Gerhardt landscape?

2. In bidding for the second painting, the Gerhardt portrait, is B acting within the express authority given to him by A?