Question
Shashi, who is now a director of Organicola Pty Ltd, meets with Serafina, the CEO of Witch Networks (an online marketing company). Serafina tells Shashi
Shashi, who is now a director of Organicola Pty Ltd, meets with Serafina, the CEO of Witch Networks (an online marketing company). Serafina tells Shashi about Witch Networks' innovative new marketing system. Shashi is convinced that the system is ideal for the distribution of Organicola's products, and offers Serafina $500 000 for a 2-year licence. Serafina produces a licensing contract and Shashi signs the contract 'for and on behalf of Organicola Pty Ltd'. Serafina says she will arrange for the contract to be signed by her company and sent over to Organicola in a few days. A week later Johnny receives the contract. He is not as enthusiastic as Shashi about the marketing system. He contacts Witch Networks and tells them that Organicola will not be proceeding with the arrangement. Can Witch Networks enforce the licensing agreement against Organicola? In your answer, consider whether Shashi was acting with:
a)express actual authority;
b)implied actual authority; and
c)apparent authority.
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