Marta agrees to buy two tons of tomatoes from Argus Farm Products Inc hoping that she can find a principal to take responsibility for the contract.In her discussions with Argus,she does not indicate that she intends only to contract as an agent for a principal that she hopes to find.If Fresh Vegetables Ltd ratifies the contract,it can only be enforced by Argus against Fresh Vegetables Ltd.

Question

Quizplus · Accepted Answer

Marta did not make it clear that she was contracting as an agent for a principal, so she would be personally liable for fulfilling the contract if she cannot find a principal. If Fresh Vegetables Ltd ratifies the contract, they would also be liable but the contract could be enforced by either Argus or Marta.

Marta Agrees to Buy Two Tons of Tomatoes from Argus