Is Marisol Bound by the Contract?

Explanation:

Agency by estoppel is a legal concept where a principal (Marisol) leads a third party (Charlie) to believe that Charlie is acting as her agent. In this scenario, Marisol was present when Charlie told Jamal that she agreed to sell her racing bicycle, and she did not object or deny it. This gave Charlie the impression that he had the authority to act on behalf of Marisol.

Under the principle of agency by estoppel, any contract entered into by Charlie on behalf of Marisol becomes binding on her. Therefore, Marisol cannot later claim that she is not bound by the agreement formed by Charlie and Jamal due to the lack of an agency agreement between her and Charlie.

Marisol's silence and failure to disclaim Charlie's authority created a situation where she is estopped, or prevented, from denying the existence of an agency relationship. As a result, she is legally bound by the contract for the sale of the racing bicycle and must fulfill the agreement with Jamal.

In conclusion, Marisol is bound by the contract under the theory of agency by estoppel, and she should adhere to the terms of the agreement made by Charlie and Jamal regarding the sale of her racing bicycle.