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Richard is the owner of a restaurant specializing in submarine sandwiches. He hires Sheila to handle the purchasing of food supplies with various vendors. Richard

Richard is the owner of a restaurant specializing in submarine sandwiches. He hires Sheila to handle the purchasing of food supplies with various vendors. Richard gives Sheila the title of 'Purchasing Officer' and instructs her not to purchase $200,000 worth of supplies from any single vendor. Richard's administrative team is instructed to direct all communications from current and potential vendors to the 'Purchasing Officer's' contact details. Two month's ago Sheila received a call from Howard the manager of Beva Foodservice, which produces and sells Beva organic cheese. Howard and Sheila hold lengthy discussions on the supply of cheese to the restaurant and finally Sheila makes an order for the wholesale supply of Beva organic cheese worth $300,000. The agreement is concluded on the terms that Beva Foodservice would be paid within four weeks of delivery of the order to the restaurant. Howard was able to deliver the cheese to the restaurant three weeks ago and also issued the invoice for the $300,000. Richard has just discovered the details of the invoice and has refused to pay, insisting that Shelia was not authorised to make such a purchase. Howard did not know the details about Sheila's purchasing limit and he feels that Richard has to pay for the supply made to his restaurant. Required: Advise Howard on whether he can get Richard to reimburse him for the cheese supplied to his restaurant. Restrict your analysis to legal principles and cases covered in Agency Law only (do not discuss the sub-topic of 'Duties of an agent'). (30 Marks) Sample Answer Structure: Students are required to use the IRAC legal problem solving format in answering this question.

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