Brenda is a purchasing agent for Commodities Exchange Corporation. Dennis, a Com

Question

Brenda is a purchasing agent for Commodities Exchange Corporation. Dennis, a Commodities corporate officer, gives Brenda written authority to buy for the firm as many computers and peripheral devices as necessary. The next day, Dennis calls Brenda and tells her to buy only fifty notebook computers and nothing else. Brenda shows the written authority to E-Products, Inc., and enters into a contract with E-Products to buy sixty notebook computers and a selection of printers, scanners, and extra storage media. E-Products ships the order to Commodities. Is Commodities liable to E-Products under the contract? Is Brenda liable? In each case, if so, why? If not, why not?

Explanation / Answer

Yes the firm Commodities Exchange Corporation is liable to E-products Inc. as it has entered into a contract with Brenda who had written authority to buy on behalf of the firm. Merely a call by the officer may not hinder Brenda or make her liable. The written authority to Brenda is enough to prove that she had authority to buy on behalf of the CEC and CEC is liable to pay E-products and not Brenda who was only acting on behalf of the firm with written authority.

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