Review the sections on (1) a principal's liability for contracts and (2) an agent's liability for contracts in Chapter 17.

Lillian a third party broker, has been retained by St. Elizabeth Medical Center to find a new nuclear diagnostic machine.

1. Identify and explain the three types of contractual authority that St. Elizabeth's may give Lillian (either directly or indirectly) when dealing with manufacturers. Each type should have its own bullet point.

2. Identify and explain Lillian's liability for the contract depending on the level of disclosure provided to the manufacturers concerning St. Elizabeth (i.e. what is each type of disclosure and the accompanying liability?) Give each type of disclosure, what is and is not disclosed, and the liability. Each type should have its own bullet point.

Note that (1) and (2) are not tied together. They are separate answers.