Gene Stone told the Harders that he was an agent for the Trouplow Corp. and was raising money for a local expansion programme. He then proceeded to sell them fifteen $1,000 12% bonds. In truth, the Trouplow Corp. had never heard of Gene Stone, but they did have 12% bonds available for local residents to buy. To recover the $15.000 paid, the Harders should sue

Question

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Gene Stone misrepresented himself as an agent of the Trouplow Corp., and sold the Harders 12% bonds that were actually available from the Trouplow Corp. itself. Therefore, Gene Stone breached his warranty of authority by misrepresenting his relationship with the principal. The Harders should sue Gene Stone for breach of warranty of authority and seek to recover their $15,000.

Gene Stone Told the Harders That He Was an Agent