Question
Samuel makes wooden toys and owns a modest shop in the middle of Smalltown. He has one employee, Irene, who helps with the business end
Samuel makes wooden toys and owns a modest shop in the middle of Smalltown. He has one employee, Irene, who helps with the business end of things (ordering supplies, paying business-related invoices, etc.). Recently, Irene decided that Samuel's business was in need of cash. Without discussing the issue with Samuel, Irene borrowed $10,000 from Danielle, with the understanding that the loan was made on Samuels behalf, and for use in Samuels business. Samuel was incensed when he received the request for the first loan installment, as he thought Irene should have shown a bit less initiative. Nevertheless, he did begrudgingly make the first few payments on the loan. Eventually, however, the anger Samuel felt bubbled to the surface. He fired Irene and told Danielle that he had never asked Irene to take out loans for him and was not obliged to pay back this one. Should Danielle succeed in an action to collect on the loan? Explain.
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