Question
Case Analysis: Chantal held herself out as a principal while negotiating the purchase of a large stock of cosmetics and perfume from Radiance, a retailer
Case Analysis: Chantal held herself out as a principal while negotiating the purchase of a large stock of cosmetics and perfume from Radiance, a retailer that had run into financial difficulty. In fact Chantal was making the purchase on behalf of her employer, Salon Inc. Radiance was unaware that Chantal was employed by its competitor Salon Inc. however; Chantal gave the Salon Inc address as the delivery address. Upon delivery, Salon Inc. changed its mind about buying the goods and refused to pay and rejected the goods. Required: i) Define the word Apparent authority and from the mini-case above determine whether apparent authority was relevant or not with adequate motivation. ii) Briefly explain the concept undisclosed Principal as it relate to Agency contract. Explain the three possibilities in the case of undisclosed principals and who the third party can sue in the case of a breach in each case. Finally indicate which of the possibilities is applicable in the mini-case above.
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