Question
Producer, who manufactures and sells air compressor, hired Sally as a sales trainee. Producer introduced Sally to a customer, Ted saying Sally is new sales
Producer, who manufactures and sells air compressor, hired Sally as a sales trainee. Producer introduced Sally to a customer, Ted saying "Sally is new sales representative. From now on. Sally will take your orders for my compressors." Without telling Ted. Producer instructed Sally that she was not permitted to take any compressor orders without first consulting with Producer.
The next day, Ted called Sally to place and order compressors. Without speaking to Producer agreed to sell compressors to Ted.
Ted told Sally to call on Francis to make more sales. Francis, who had deal with Producer for many years, knew that Sally was a trainee who could not make sales without first consulting with Producer. Nevertheless, Francis placed and order for compressors with Sally.
When Sally submitted the orders to Producer, Producer refused to fill them. Ted and Francis are now suing Producer for breach of contract based on the orders they placed with Sally.
Discuss the liability of Producer to Ted and Francis for breach of contract.
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