Question
Alice is a purchasing agent for Cable & Wire Corp. Doyle, the CEO of Cable & Wire gives Beryl a written letter authority her to
Alice is a purchasing agent for Cable & Wire Corp. Doyle, the CEO of Cable & Wire gives Beryl a written letter authority her to buy for the firm as much copper as necessary. The letter is written on company stationary and Beryl signed it.
The next day, Doyle calls Beryl and tells her to buy only a certain quantity of copper and no more. Beryl shows the written authorization letter to Earth Resources Inc., and enters into a contract to buy more than the quantity specified by Doyle.
Earth Resources ships the order to Cable & Wire.
Is Cable & Wire liable to Earth Resources under the contract? Is Beryl liable? In each case, if so, why? If not, why not?
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