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Lane Is an Employee Working for Prairie Grains,a Producer of Genetically

Question 63

Multiple Choice

Lane is an employee working for Prairie Grains,a producer of genetically modified grain based in Alberta.Acting as an agent,Lane makes a trip to Saskatchewan to make a call to a new customer.While he's away,Prairie Grains goes bankrupt.He makes a deal on behalf of Prairie Grains to sell $35 000 worth of grain to the customer.Which of the following is true?


A) The contract is unenforceable because a bankrupt company cannot contract.
B) The contract is enforceable because Lane acted with actual authority.
C) The contract is unenforceable because Lane is an employee,not an agent.
D) The contract is unenforceable because Prairie Grains did not ratify it.
E) The contract is enforceable because Lane acted with apparent authority based on his prior dealings with the customer.

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