Question
Carbon & Carbide, Inc. owns a very famous building in Chicago. Carbon & Carbide also makes all sorts of widgets. They need all sorts of
Carbon & Carbide, Inc. owns a very famous building in Chicago. Carbon & Carbide also makes all sorts of widgets. They need all sorts of components, metal, and parts to make their widgets. Cindy is a purchasing agent for Carbon & Carbide. Doyle, a Carbon & Carbide corporate officer, gives Cindy written authority to buy for the firm as much copper as necessary. The next day, Doyle calls Cindy and tells her to buy only a certain quantity of copper and no more. Cindy shows the written authority to Earthbound Resources, Inc., and enters into a contract to buy more than the quantity specified by Doyle. Earthbound Resources ships the order to Carbon & Carbide. Is Carbon & Carbide liable to Earthbound Resources under the contract? Is Cindy liable? In each case, if so, why? If not, why not?
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