Bolt Corp. dismissed Ace as its general sales agent and notified all of Aces known customers by
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all of Ace’s known customers by letter. Young Corp., a retail
outlet located outside of Ace’s previously assigned sales territory,
had never dealt with Ace. Young knew of Ace as a result of various
business contacts. After his dismissal, Ace sold Young goods,
to be delivered by Bolt, and received from Young a cash deposit
for 20% of the purchase price. It was not unusual for an agent in
Ace’s previous position to receive cash deposits. In an action by
Young against Bolt on the sales contract, Young will
Lose, because Ace lacked any implied authority to
make the contract.Lose, because Ace lacked any express authority to
make the contract.Win, because Bolt’s notice was inadequate to terminate
Ace’s apparent authority.Win, because a principal is an insurer of an agent’s acts.
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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