Wayne is an agent for Sarah, a professional hockey player.For two seasons, he has helped Sarah negotiate her contract with the Saskatoon Hilltops Hockey Team.He has never signed her contract.Sarah always signed her contract herself and she usually participates in the negotiations.This year, after a hard negotiating session that Sarah did not attend, he signed a contract on her behalf.The contract is binding because as an agent, Wayne has the absolute unconditional power to act on behalf of Sarah, his principal.

Question

Quizplus · Accepted Answer

While it is true that an agent has the power to act on behalf of their principal, in this case, Wayne had not previously been authorized by Sarah to sign her contract on her behalf. Without explicit authorization, Wayne did not have the authority to sign the contract, making it invalid.

Wayne Is an Agent for Sarah, a Professional Hockey Player