Chapter 37 Assignment Answers

Chapter 37 Assignment Answers - liable. Strich had apparent...

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Business Law I Fall 2011 Chapter 37 - Assignment Answers Evelyn Tavares 4. No. The discharge of the agent by the principal in this case was a violation of their contract. Jones is liable to Stayword. Jones is correct when he states that the principal has the power to terminate the agency by discharging the agent, but in this case, the principal did not have the right to do so. The contract between Stayword’s and Jones was for a two-year period, and getting a championship match was not a requirement to validate the contract. In other words, the contract did not give Jones the right to terminate the agreement if Stayword was unsuccessful in getting a championship match. Therefore, because Stayword was fired after just one year, he is probably entitled to the benefits of the second year of the contract. This in their case is the 10% over the 4 millions. 5. This is a case of authorization by the principal’s conduct as to third persons. Plymouth was
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Unformatted text preview: liable. Strich had apparent authority to make the contract in the name of Plymouth Optical Co. Since Plymouth knew about what Strich was doing,for three years and did nothing to stop him. Doing so, Plymouth became compliant. 11. No. Although she had explicitly forbidden Farley to purchase the outfits in question, Martha still placed Farley in the position of manager of the store with power of purchase, and Womens Wear Inc. had no knowledge that Farley was not suppose to buy blue jeans. Martha then was liable for the purchase made by her agent, Farley. 13. This is a case of effect of proper exercise of authority. No. When Fox made the contract with Lanceford, she acted as an agent. Therefore, the contract was made in Hollanders name.Fox was not a party to the contract and therefore could not sue Lanceford for failure to perform it....
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