General Retail Associates (GRA) owned Valley Mall. Reliable Property Management Company operated the mall on GRAs behalf.
Question:
General Retail Associates (GRA) owned Valley Mall.
Reliable Property Management Company operated the mall on GRA’s behalf. Reliable leased the storefronts to tenants, including GameOn, and contracted with Sweep Clean, Inc., to remove ice and snow from the sidewalks around the mall. Each contract identified GRA as the mall’s owner. Kiko, a GameOn employee, slipped on a patch of ice that Sweep Clean had negligently failed to remove.
Was Reliable liable for Kiko’s injury? No. A principal whose identity is known by a third party at the time that party enters into a contract with an agent is a(n)
______________ principal. This type of principal is liable under a contract that an agent, acting within the scope of their authority, enters into with a third party on the principal’s behalf. Ordinarily, the agent is not liable under the contract. In this case, because the identity of the principal
(GRA) was fully ______________ in the contracts that Reliable entered into on GRA’s behalf, the agent could not be held liable under those contracts for Kiko’s injury. Of course, GRA and Sweep Clean may be liable.
Step by Step Answer:
Business Law Text And Exercises
ISBN: 9780357717417
10th Edition
Authors: Roger LeRoy Miller, William E. Hollowell