Frey entered into a contract with Cara Corp. to purchase televisions on behalf of Lux, Inc. Lux
Question:
Frey entered into a contract with Cara Corp. to purchase televisions on behalf of Lux, Inc. Lux authorized Frey to enter into the contract in Frey’s name without disclosing that Frey was acting on behalf of Lux. If Cara repudiates the contract, which of the following statements concerning liability on the contract is not correct?
a. Frey may not hold Cara liable and obtain money damages.
b. Frey may hold Cara liable and obtain specific performance.
c. Lux may hold Cara liable upon disclosing the agency relationship with Frey.
d. Cara will be free from liability to Lux if Frey fraudulently stated that he was acting on his own behalf.
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Anderson's Business Law And The Legal Environment
ISBN: 9780324638189
20th Edition
Authors: David P Twomey, Marianne M Jennings, Ivan Fox
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