Adam is a traveling salesperson for Petri Plumbing Supply Corp. Adam has been given express authority to offer a 5 per cent discount to customers if payment is made within 30 days of delivery. Nothing is said about extending any further credit to customers. Adam calls on a new prospective customer Johns plumbing Firm. Adam tells John that if he orders from him Petri is prepared to give a 10 per cent discounts with payments to be made in equal installments 30, 60 and 90 days after date of delivery. John calls Petri to see if Adam had authority to enter into a contract on Petris behalf. Petri confirms this even though no mention was made of the payment of the agreement. Petri does state Adam may give a discount on purchase orders. On this basis John orders $10,000 of plumbing supplies from Adam. John recives a bill for $9,500 to be paid in full in 30 days. John argues that he should only be liable to pay $9,000 in 3 equal installments 30, 60 and 90 days out.

Discuss the rights and obligations of Adam, Petri and John.?

Thanks!