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?

Answer 1

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.

Explanation:

Indeed, the risk of Commodities stretches out to E-Products. This is mostly a direct result of the risk of the chief is towards the operator for the agreement the specialist is the gathering in the interest of the head. Aside from this, there is an express power having a place with Brenda as she was given the approval from the head. Because of express, an evident position E-Products got the affirmation that Commodities is being spoken to by Brenda.

There is no close to home risk of Brenda to pay for the different fringe gadgets to the E-Products. Because of evident position, it was a reality clear to E-Products that Brenda is just going about as an operator for Commodities. As these items were purchased for the utilization of the head as opposed to the individual utilization of Brenda in this way she doesn't have any obligation.