Profit Corporation authorized Anderson, an employee, to find a buyer for used equipment that Profit intended to

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Profit Corporation authorized Anderson, an employee, to find a buyer for used equipment that Profit intended to sell. Anderson believed that he had authority to contract for the sale of the equipment, but in fact he did not. Anderson found a prospective buyer, Caveat Corporation, and contracted with Caveat on behalf of Profit for the sale of the equipment to Caveat. In this contract, Anderson warranted that the equipment was fit for Caveat's particular needs. A responsible officer of Profit read the contract and directed that the equipment be shipped to Caveat. The equipment did not meet the special needs of Caveat, and Caveat refused to pay for it. Profit sued Caveat for the contract price. Who will win this case and why?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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The Legal Environment of Business A Critical Thinking Approach

ISBN: 978-0132664844

6th Edition

Authors: Nancy K Kubasek, Bartley A Brennan, M Neil Browne

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