Solved

Puporting to Act on Behalf of Otton Mining Inc, Gaetan

Question 20

Multiple Choice

Puporting to act on behalf of Otton Mining Inc, Gaetan signed a contract to purchase some mining claims from Boucher. Boucher believes it is contracting with Otton. In fact, Gaetan had no authority from Otton to contract on its behalf. He had never discussed buying the claims with Otton, but he thought that Otton would be interested in the claims and would pay him a commission for arranging for Otton to buy them. Which of the following is TRUE?


A) The contract is binding on Gaetan personally.
B) The contract will be binding on Otton if Otton ratifies the contract either expressly or impliedly.
C) The contract can never be binding on Otton since it was negotiated without any authority from Otton.
D) The contract is binding on Gaetan personally but he can avoid liability if Otton ratifies the contract.
E) The contract is binding on Otton and Gaetan.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents