Question
1.Ingrid was the purchasing agent for Fashion Boutique Inc. She was authorized to place orders up to $10,000, but would have to get the owner's
1.Ingrid was the purchasing agent for Fashion Boutique Inc. She was authorized to place orders up to $10,000, but would have to get the owner's approval for anything larger. Ingrid had made numerous purchases from Jade Clothing over the past three years. The owner of Jade was aware of Ingrid's authority to purchase merchandise, but not of any limitations on the size of the order. On January 17th, she placed an order for $13,672 without getting approval. Will Jade Clothing be able to enforce this contract?
a)No, because they were not informed of Ingrid's limitations in the agency relationship.
b)Yes, since the agent was within her actual authority.
c)No, because Ingrid was in breach of warranty of authority.
d)Yes, since the third party had no reason to believe that Ingrid did not have the authority to bind the principal.
e)No, since the increase in value of the new order is clearly outside Ingrid's authority and the principal should not be bound by her actions.
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