Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 13

Stan sold goods to Bill in good faith, believing him to be a principal. Bill in fact w as acting as agent for Nancy and was within the scope of his authority. The goods were charged to Bill, and on his refusal to pay, Stan sued Bill for the purchase price. While this action was pending, Stan learned of Bill's relationship with Nancy. Nevertheless, thirty days after learning of that relationship, Stan obtained judgment against Bill and had an execution issued that was never satisfied. Three months after rendition of the judgment, Stan sued Nancy for the purchase price of the goods. Is Nancy liable? Explain.