John Dunning was the sole officer of the R.B. Dunning Co. and was responsible for the management

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John Dunning was the sole officer of the R.B. Dunning Co. and was responsible for the management and operation of the business. When the company rented a warehouse from Samuel and Ruth Saliba, Dunning did not say that he was acting for the firm. The parties did not have a written lease. Business faltered, and the firm stopped paying rent. Eventually, it went bankrupt and vacated the property. The Salibas filed a suit in a Maine state court against Dunning personally, seeking to recover the unpaid rent. Dunning claimed that the debt belonged to the company because he had been acting only as its agent. Who is liable for the rent, and why?

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Business Law Text and Cases

ISBN: 978-0324655223

11th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F

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