Q1. 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?
Q2. Tropical Vittles, LLC, hires Sophie to act as its agent to
buy a ten-acre tract of land from Rico for $1,000 per acre. Tropical Vittles
does not want Rico to know that it is the principal or that Sophie is its
agent. Tropical Vittles wants the land for a new fast-food restaurant, and
believes that Rico may not sell the land for that purpose or may demand a
premium price. Sophie makes the purchase, signing only her name to the contract
as the buyer and not disclosing to Rico the agency relationship. The transfer
of the deed is to occur on May 1. Rico learns of Tropical Vittles’s identity on April 15. Can Rico legally refuse
to deed the property on May 1? Explain.