Question
Jenny is the owner of a chain of handicrafts and antique goods store in X country in the South Pacific. Her manager Patrick is in
Jenny is the owner of a chain of handicrafts and antique goods store in X country in the South Pacific. Her manager Patrick is in charge of the biggest branch in the city. This required her to go around the island many times in a year to buy goods from various suppliers. When Jenny went on her buying trip, her half-sister Jessica ran the shop. Jenny instructed Jessica, that she could sell any of the items displayed in the shop as long as Jenny got at least eighty percent of the price displayed on the item. Jessica was warned that under no circumstances must she purchase any stock or pay any bill for the shop.
While Jenny was away buying goods, Jessica sold Irish an antique sword for seventy-five percent of the price displayed. Irish bought the sword believing that Jessica owned the shop.
Jessica also sold Henna, a regular customer and good friend of Jenny's, a Decorative White Stone for sixty percent of the displayed price. Henna was aware that Jenny would not sell for lower than eighty percent of the marked price, even to a trader such as herself.
Jessica also purchased some items of Embossed Copper Jugs from a collection shown to her by Diana, for $200. Jessica believed this deal to be a bargain, one that she felt Jenny would not want to let it go.
On Jenny's return, she discovered that the Embossed Copper Jugs were indeed very rare, and in fact, were worth more than $2,000. Diana also has heard that the Embossed Copper Jugs were worth much more, returned to the store and insisted that the items be returned because she was unaware that Jessica did not own the store, and thus had no right to buy them. However, Jenny refused to give the Jugs back, arguing that the contract was valid.
Advise:
(a) Jenny, (b) Jessica, and (c) Diana of their legal position
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