BLTC-9e Sample Answer for End-of-Chapter Hypothetical Question with Sample Answer Chapter 28: Agency Relationships in Business 28.2 Hypothetical Question with Sample Answer Paul Gett is a well-known, wealthy financial expert living in the city of Torris. Adam Wade, Gett’s friend, tells Timothy Brown that he is Gett’s agent for the purchase of rare coins. Wade even shows Brown a local newspaper clipping mentioning Gett’s interest in coin collecting. Brown, knowing of Wade’s friendship with Gett, contracts with Wade to sell a rare coin valued at $25,000 to Gett. Wade takes the coin and disappears with it. On the payment due date, Brown seeks to collect from Gett, claiming that Wade’s agency made Gett liable. Gett does not deny that Wade was a friend, but he claims that Wade was never his agent. Discuss fully whether an agency was in existence at the time the contract for the rare coin was made. Sample Answer:
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This note was uploaded on 11/21/2011 for the course MGMT 4324 taught by Professor Tim during the Spring '11 term at Andhra University.