Fred Hash worked for Van Stavern Construction Co. as a field supervisor in charge of constructing a
Question:
Fred Hash worked for Van Stavern Construction Co. as a field supervisor in charge of constructing a new plant facility. Hash entered into a contract with Sutton’s Steel & Supply, Inc., to provide steel to the construction site in several installments. Hash gave the name of B. D. Van Stavern, the president and owner of the construction firm, instead of the firm name as the party for whom he was acting. The contract and the subsequent invoices all had B. D. Van Stavern’s name on them. Several loads were delivered by Sutton. All of the invoices were signed by Van Stavern employees, and corporate checks were made out to Sutton. When Sutton Steel later sued Van Stavern personally for unpaid debts totaling $40,437, it claimed that Van Stavern had ratified the acts of his employee, Hash, by allowing payment on previous invoices. Although Van Stavern had had no knowledge of the unauthorized arrangement, had he legally ratified the agreement by his silence? Explain.
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt