Without Ted's knowledge, Phil, who frequently purchased lumber on Ted's behalf, purchased a large quantity of plywood from Chris as agent for Ted. Phil intended to advise Ted of the purchase later . If Ted had died before the contract was negotiated by Phil, the purchase agreement would be unenforceable, because the principal did not exist at the time when the agreement was made.

Question

Quizplus · Accepted Answer

An agency relationship cannot exist without a principal. If Ted had died before the contract was negotiated by Phil, there would be no principal to authorize the agency relationship, making the purchase agreement unenforceable.

Without Ted's Knowledge, Phil, Who Frequently Purchased Lumber on Ted's