5. business law Andrea hired Jack to be the sales agent for her paintings. Howev

Question

5. business law

Andrea hired Jack to be the sales agent for her paintings. However, in a month's time, she terminated the agency with Jack. Harold, a customer who had dealt with Jack earlier, was not aware of the termination. Harold approached Jack to buy a painting and wrote him a check of $5,000, the advance payment for the painting which Jack promised would be delivered in two weeks. When Jack did not contact Harold later, Harold demanded that Andrea honor the contract, since Jack sold the picture as her agent. Which of the following is true of this situation?

A. Since Jack had apparent authority, Andrea is liable to honor his contract with Harold.

B. Harold's duty was to contact Andrea. His failure to do this removes her liability to honor the contract.

C. Jack had express authority as Andrea's agent, which is not terminated with the termination of their agency.

D. As Andrea terminated the agency with Jack in violation of his rights, Jack has the direct authority to sell her paintings.

Explanation / Answer

The principal is bound by the action of the agent. If the agent has left over the job then the principal has the liability to fulfill the contract. Hence option A is correct.

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.