Pedro hires Andrea to negotiate the purchase of a sailboat for Pedro.Andrea decides to buy a sailboat from Sally that meets Pedro's specifications.Andrea tells Sally that the purchase is really being made by Pedro,and Andrea and Sally sign a written contract,with Andrea signing on Pedro's behalf.Based on this situation:

Question

Quizplus · Accepted Answer

Andrea signed on Pedro's behalf, but explicitly told Sally that Pedro was the one making the purchase. Therefore, Andrea is not liable because she did not intend to be bound by the contract. Pedro, on the other hand, is liable because he was the intended purchaser and Sally reasonably relied on Andrea's representation that she was buying on Pedro's behalf.

Pedro Hires Andrea to Negotiate the Purchase of a Sailboat