Question
1. 221 Group Inc. received a call from Textbook-2-You Inc. (T2U) which sells textbooks, novels, and encyclopedia sets to door-to-door customers around Comox. T2U had
1.221 Group Inc. received a call from Textbook-2-You Inc. ("T2U") which sells textbooks, novels, and encyclopedia sets to door-to-door customers around Comox. T2U had hired a door-to-door salesperson named Cyril, but had recently run into issues with his conduct. After being hired, Cyril was required to complete a virtual training course which outlined the sales protocols for T2U and, importantly, how to conduct door-to-door sales safely in the COVID-19 environment. As part of the training course, Cyril learned that he was permitted to negotiate the price of any of the products with the customers however, under no circumstances was he permitted to accept a contract for below $125 for each textbook. After completing his training, Cyril was assigned a "catchment" area in Comox where he would canvass customers door-to-door. To help alleviate homeowner concerns, Cyril was given a name-tag and mask with the company name and logo, business cards, and a brochure showing all of the T2U inventory. After being unsuccessful in his first couple of door knocks, Cyril knocked on the home of Teresa who, conveniently enough, was in the market for some hard-copy textbooks for the upcoming school term. Cyril could sense a sale might be possible and became very nervous. In his haste to close the deal, he failed to remember his training. He agreed to sell five textbooks to Teresa for $100 total. Teresa agreed. Cyril contacted his manager at T2U who was furious, saying the company would lose hundreds on the deal. The T2U manager then called up Teresa and advised that the company would not be moving forward with the contract; however, Teresa says the company is bound.
Would the contract negotiated by Cyril with Teresa be binding and enforceable on T2U? Explain and apply the relevant law to determine if the relationship between Cyril and T2U is valid and if Teresa can enforce the agreement against T2U.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started