This is a legal question Abe was an agent for Paul. Paul authorized Abe to purch
ID: 348260 • Letter: T
Question
This is a legal question
Abe was an agent for Paul. Paul authorized Abe to purchase 2 vehicles for him. The first vehicle required Abe to just sign for Paul and the second vehicle required Abe to negotiate the best price possible. Abe had to leave town when the purchases were to be done, so he delegated the responsibility to purchase the 2 vehicles to Sam, without telling Paul about the delegation. Sam purchased the 2 vehicles as he was asked to do by Abe, but when Paul found out about the purchases Paul disavowed them two weeks later and refused to perform the contracts. Discuss Sam’s rights and the liabilities of Abe and Paul.
Explanation / Answer
In this case Abe is the agent of Paul and he is authorized by Paul to purchase 2 vehicles for him but Abe handed over the responsibility to Sam without Paul's consent as Abe had to leave town during the agreement. Sam purchased the vehicles as he was asked to do but Paul came to know of the deal that Abe and Sam made two weeks after the purchase has been complete. In this case Sam does not possess any liability because he was not formally contracted by Abe or Paul but Paul is liable because he has violated the contract because he was supposed to do the transaction on behalf of Paul but it was Sam who did it so Abe is liable if there is any lawsuit filed against him by Paul.
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