Juan and Marie enter into an oral agreement that Marie will sell Juan's crusty herb garlic bread to gourmet food stores in the area. This works until Juan gets sick and no longer makes his bread. Marie is furious that Juan is unable to supply her with the popular bread and sues him for lost profits. A court is likely to rule:

Question

Quizplus · Accepted Answer

Since the agreement between Juan and Marie was oral, it is likely that there was no clear termination provision or duration specified. However, when Juan became unable to supply the bread, Marie's authority as his agent lapsed since he could no longer act on Juan's behalf. Therefore, the agency relationship between Juan and Marie is terminated. Marie may be able to pursue other legal remedies, but she cannot sue Juan for lost profits as her authority to act as his agent no longer existed.

Juan and Marie Enter into an Oral Agreement That Marie