Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 4

Shane Quadri contacted Don Hoffman, an employee of Al J. Hoffman Co. (Hoffman Agency), to procure car insurance. Later, Quadri's car was stolen. Quadri contacted Hoffman, who arranged with Budget Rent-a-Car for a rental car for Quadri until his car was recovered. Hoffman authorized Budget Rent-a-Car to bill the Hoffman Agency. Later, when the stolen car was recovered, Hoffman telephoned Goodyear and arranged to have four new tires put on Quadri's car to replace those damaged during the theft. Budget and Goodyear sued Hoffman for payment of the car rental and tires. Is Hoffman liable on his oral promise to pay for the car rental and the four new tires?