Harris is a purchasing agent for Elkin,a sole proprietor.Harris has the express authority to place purchase orders with Elkin's suppliers.Harris typically conducts business through the mail and has very little contact with Elkin.Elkin was incapacitated by a stroke and was declared incompetent in a judicial proceeding.Subsequently,Harris placed an order with Ajax,Inc.on behalf of Elkin.Neither Ajax nor Harris was aware of Elkin's incapacity.With regard to the contract with Ajax,Elkin (or Elkin's legal representative) will:
A) not be liable because Harris was without authority to enter into the contract.
B) not be liable provided that Harris had placed orders with Ajax in the past.
C) be liable because Harris was acting within the scope of Harris' authority.
D) be liable because Ajax was unaware of Elkin's incapacity.
Correct Answer:
Verified
Q74: Termination of the agency relationship at the
Q75: Which of the following terminates an agency
Q76: Which of the following represents an agency
Q77: Under the Restatement (Third)of Agency,which of the
Q78: The apparent authority of a general agent
Q80: An agent's apparent authority ends when:
A)the principal
Q81: Which of the following is an example
Q82: Ginny is an agent of Vroom! Motors,and
Q83: When is constructive notification sufficient for an
Q84: What happens if the principal is completely
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents