Question
Celigh Corporation contracts with Jameson PLLC to build an addition to Celigh's corporate office building. Jameson contracts with Proforce Company for materials for the addition
Celigh Corporation contracts with Jameson PLLC to build an addition to Celigh's corporate office building. Jameson contracts with Proforce Company for materials for the addition but refuses to pick up the materials. Meanwhile, Celigh hires Shawn, a certified public accountant, to work in its cost-accounting division as an employee, with no authority to hire or supervise others. Shawn asks Ted, an outside experienced accountant, to advise her on certain accounting procedures but fails to pay Ted for the service. Celigh also contracts with Dianne, a salesperson, to solicit orders for its products in a designated territory. Dianne obtains an order from Verity Industries, Inc., which is assured the order will be filled soon. But Dianne does not follow through with the paperwork and fails to submit the order to Celigh. Verity suffers a loss. Proforce, Ted, and Verity Industries claim Celigh is liable under agency law.
- Discuss fully whether an agency relationship was created by Celigh with Jameson PLLC, Shawn, and/or Dianne.
- Cite your textbook or other reliable source.
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