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Georgia collects 'Disney merchandise and appoints Joe as her agent to purchase three framed pictures from another collector, Mickey. Georgia gives Joe a limit of
Georgia collects 'Disney\" merchandise and appoints Joe as her agent to purchase three framed pictures from another collector, Mickey. Georgia gives Joe a limit of $10,000 to spend, which Joe promptly deposits in his own bank account \"to keep it safe until it is needed\". Georgia also instructs Joe to keep the purchase confidential. Joe is very pleased and proud of his appointment as Georgia's agent and tells three of his closest friends, but swears them all to secrecy. Two of these friends work in the same industry and immediately tell their employers. Joe approaches Mickey and introduces himself as Georgia's agent. Following negotiations, it is agreed that Mickey will sell the Pictures to Georgia for $12,000. When Georgia is informed of the contract, she refuses to be bound, maintaining that Joe did not have the authority to make it. Mickey disagrees and wants to proceed with the sale. When Joe was inspecting the pictures, he noticed that Mickey also had the original costume used in the 2004 Warner Bros. movie \"Batman\". Joe makes an agreement with Mickey to sell the costume to Georgia for $15,000. a) Can Mickey enforce the contract for the pictures with Georgia? Give reasons. Mickey disagrees and wants to proceed with the sale. When Joe was inspecting the pictures, he noticed that Mickey also had the original costume used in the 2004 Warner Bros. movie \"Batman\". Joe makes an agreement with Mickey to sell the costume to Georgia for $15,000. a) Can Mickey enforce the contract for the pictures with Georgia? Give reasons. No. Mickey cannot enforce the contract with Georgia as Joe the agent was acting on behalf of Georgia by ratification and was given actual authority to purchase three framed pictures from a certified collector for the limited amount of $10,000. Joe has acted outside of both apparent and actual authority and proper due diligence by Georgia for accepting a much dearer price of $12,000. Because Joe acted outside of his actual authority, the contract he entered with Mickey on Georgia's behalf is not enforceable by Mickey. this amount is not unreasonable to achieve the purchase This is because the principal Georgia is generally not bound by the unauthorised acts of the agent Joe. Since Joe went outside the boundaries of Georgia's instructions, Mickey may be able to pursue Joe for a breach of warranty of authority. But he cannot enforce the contract against the principle in this case. would a reasonable person believe he is Georgia's agent
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