Mori is an employee of Garvie Corp, a film production business.Mori's job is to negotiate with screenplay writers for the rights to use the screenplay writers' work.He was given authority to sign a contract on behalf of Garvie with Joseph, a screenplay writer, for a specific screenplay.In October, a contract was concluded by Mori on behalf of Garvie with Joseph for the rights to that screenplay.In November, Mori entered into another contract with Joseph for a different screenplay.Neither Mori nor Garvie have ever said anything to Joseph about Mori's authority to act for Garvie.The contract is binding on Garvie.

Question

Quizplus · Accepted Answer

Mori was given authority to sign a contract on behalf of Garvie with Joseph, and he did so for two different screenplays. Even though Mori and Garvie never disclosed the extent of his authority to Joseph, this does not affect the binding nature of the contracts that were signed. Therefore, the statement that "the contract is binding on Garvie" is true.

Mori Is an Employee of Garvie Corp, a Film Production