Dart Corp.dismissed Ritz as its general sales agent.Dart notified all of Ritz's known customers by letter.Bing Corp. ,a retail outlet located outside of Ritz's previously assigned sales territory,had never dealt with Ritz.However,Bing knew of Ritz as a result of various business contacts.After his dismissal,Ritz sold Bing goods,to be delivered by Dart,and received from Bing a cash deposit for 20 percent of the purchase price.It was not unusual for an agent in Ritz's previous position to receive cash deposits.In an action by Bing against Dart on the sales contract,which of the following is true?

Question

Quizplus · Accepted Answer

If a third party gives proper notification to an agent with actual or apparent authority to receive it,the principal is bound as if the notification had been given directly to him.Similarly,notification to a third party by an agent with the necessary authority is considered notification by the principal.

Dart CorpDismissed Ritz as Its General Sales Agent