Question 2 - Agency

Galaxy is a small skateboard retailer, owned and operated by Mason. Mason has one employee, Ziggy.With the increase in popularity of skateboarding following the Tokyo Olympics, Mason wants to expand his range of skateboards.

Together, Mason and Ziggy go and visit two skateboard suppliers. They talk to the salesperson at each store. They get some information about a range of skateboards and leave.

Later that day, Mason tells Ziggy, 'Ziggy, I want you to buy some budget skateboards for our new Olympic range. Do not spend more than $30,000!'

Ziggy goes back to one of the suppliers they had previously visited. She talks to Orpheus, the salesperson that they spoke to last time. Orpheus recommends that Ziggy purchase a deluxe skateboard model called 'Blowin in the Wind Skateboard'. This skateboard costs $38,000. Orpheus tells Ziggy that this skateboard is highly sought after by skateboarders. Ziggy purchases 2 deluxe skateboards totalling $76,000 on credit, and signs the contract, 'Ziggy, on behalf Galaxy'.

The next day, when Mason receives the invoice, discovering that Ziggy disobeyed his instructions, he is furious.He says to Ziggy: 'Galaxy will not pay for this!'

Using relevant legal principles of agency law only, discuss whether Ziggy had the authority to purchase the skateboards on behalf of Galaxy. Will Galaxy be required to pay the invoice?