Question: Daniel negotiated a contract on behalf of Compu / sys Inc for the supply of a computer system to Leader Co . The contract called
Daniel negotiated a contract on behalf of Compusys Inc for the supply of a computer system to Leader Co The contract called for the supply by Compusys Inc of hardware and maintenance services for two years in return for $ million. Daniel had no authority to negotiate this contract on behalf of Compusys After months of negotiations, Compusys agreed to perform the contract in part. The corporation agreed to provide the hardware but not the maintenance services. By the time it made this commitment it had gone bankrupt and consequently had lost capacity. Which of the following is TRUE?
Question Select one:
A
Cumpusys did not ratify the contract because a bankrupt principal does not have the capacity to ratify a contract.
B
Compusys has ratified the contract because it has agreed to some of the obligations under the contract.
C
If Compusys has not ratified the contract, Daniel will not be personally liable in any circumstances.
D
Compusys ratified the contract even though it did not agree to the obligations under the contract within a reasonable time.
E
Compusys has ratified the contract because a bankrupt corporation can ratify a contract.
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