Steve and Clark are trading partners, managing a few businesses which included building yachts and farming, who after several years working together decide to take a holiday to South Africa. They will be away for almost two months and as such, they ask their neighbor Ryan to look after the house and property whilst they are away. One week after their departure, a violent storm hits the place breaking a few windows of the house and some part of the roof exposing the house to the risk of further damage. The immediate expense is required to preserve the property, so Ryan engages a contractor to come and repair the windows and roof. During this time, Ryan tried to contact Steve and Clark but is unable to contact either of them as they are somewhere deep in the Amazon, so are not reachable.

When Steve and Clark return from the trip up the Amazon, they find that they have a large bill from the roofing contractor for repairs. They feel aggrieved at this situation and refused to pay for the repairs.

Question: Assume that Ryan did not disclose the actual owners of the house to the contractor when he arranged for repairs. Who can the contractor recover his money from?

a.

Steve and Clark, as it is their house

b.

Ryan, as Ryan hired the contractor

c.

Ryan only, because Ryan was in legal possession of the house at the time of repairs

d.

Either Ryan or Steve & Clark, based on the legal rule of undisclosed principal