Jane acted as agent for the ACME Construction Co.as a buyer of materials.On Monday,while Jane was travelling on a buying trip,one of ACME's creditors petitioned it into bankruptcy.The following day,Jane purchased three boxcar loads of lumber on behalf of ACME.
A) ACME is liable to pay for the lumber.
B) Jane may be in breach of her warranty of authority.
C) Jane's agency relationship with ACME will terminate as soon as Jane is notified.
D) ACME may ratify the lumber contract when it becomes aware of it.
E) All of the responses are correct.
Correct Answer:
Verified
Q1: Adrienne hired an agent to sell a
Q4: How may an agency arise?
A) Contract.
B) Necessity.
C)
Q6: Who can be an agent?
A) Employee.
B) Independent
Q8: A principal may incur liability
A)if a third
Q12: Which parties are bound by the contract
Q14: While an agent is travelling in Northern
Q15: Which statement is a false statement? Agency
Q16: Newsome Enterprises Ltd.hired Joe as its purchasing
Q18: Where the actions of a person convey
Q19: Adrienne hired an agent to sell a
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