Liability for Agent’s Contracts
Amanda Fultz
Mark Davis
BUL 2131-43
8-19-2013
Liability for Agent’s Contracts
You run a successful paper mill and send out your three best personnel to secure new wood pulp sources using due diligence and skill. Applying the agency principles outlined in this chapter, answer the following questions. Delilah, does not return with wood pulp, but brings back three contracts. Acting within the scope of her authority, she contracted with Evon, who knew your identity at the time; Felipe, who knew that Delilah was acting on behalf of someone but not whom; and Giorgio, who did not know that Delilah was acting on anyone’s behalf. For which contracts, if any, are you liable? For which contracts, if any, is Delilah liable? Explain.
According to the textbook, (Business Law--Text and Exercises--7th edition/Roger LeRoy Miller/William Eric Hollowell 2014 Cengage Learning, Mason, Ohio Chapter 26 page 355) A disclosed principal is a principal whose identity is known by the third party at the time the contract is made by the agent. A partially disclosed principal is a principal whose identity in not known by the third party, but the third party knows that the agent is or may be acting for a principal at the time the contract is made. An undisclosed principal whose identity is totally unknown by the third party at the time the contract is made, and the third party has no knowledge that the agent is acting in an agency capacity. (Business Law--Text and Exercises--7th edition/Roger LeRoy Miller/William Eric Hollowell 2014 Cengage Learning, Mason, Ohio Chapter 26 page 355)
When the principal is undisclosed the agent may be liable (Business Law--Text and Exercises--7th edition/Roger LeRoy Miller/William Eric Hollowell 2014 Cengage Learning, Mason, Ohio Chapter 26 page 355) , if Delilah would or could be responsible for Giorgio’s contract. Since Giorgio’s contract was undisclosed because he didn’t know that
Mark Davis
BUL 2131-43
8-19-2013
Liability for Agent’s Contracts
You run a successful paper mill and send out your three best personnel to secure new wood pulp sources using due diligence and skill. Applying the agency principles outlined in this chapter, answer the following questions. Delilah, does not return with wood pulp, but brings back three contracts. Acting within the scope of her authority, she contracted with Evon, who knew your identity at the time; Felipe, who knew that Delilah was acting on behalf of someone but not whom; and Giorgio, who did not know that Delilah was acting on anyone’s behalf. For which contracts, if any, are you liable? For which contracts, if any, is Delilah liable? Explain.
According to the textbook, (Business Law--Text and Exercises--7th edition/Roger LeRoy Miller/William Eric Hollowell 2014 Cengage Learning, Mason, Ohio Chapter 26 page 355) A disclosed principal is a principal whose identity is known by the third party at the time the contract is made by the agent. A partially disclosed principal is a principal whose identity in not known by the third party, but the third party knows that the agent is or may be acting for a principal at the time the contract is made. An undisclosed principal whose identity is totally unknown by the third party at the time the contract is made, and the third party has no knowledge that the agent is acting in an agency capacity. (Business Law--Text and Exercises--7th edition/Roger LeRoy Miller/William Eric Hollowell 2014 Cengage Learning, Mason, Ohio Chapter 26 page 355)
When the principal is undisclosed the agent may be liable (Business Law--Text and Exercises--7th edition/Roger LeRoy Miller/William Eric Hollowell 2014 Cengage Learning, Mason, Ohio Chapter 26 page 355) , if Delilah would or could be responsible for Giorgio’s contract. Since Giorgio’s contract was undisclosed because he didn’t know that