Jonathan was a used-car enthusiast. He entered into an agency agreement with Andrea. She owned a used car lot. The agency agreement limited Jonathan's authority to purchase used vehicles for less than $25 000 and to ship them by flatbed to Andrea's lot. When passing through Toronto one Saturday morning, Jonathan stopped at an auto auction and saw a 1985 Jaguar that he wanted to bid on for Andrea. He was successful and purchased the vehicle for $24 000. However, he had no flatbed trailer and as such decided to drive the vehicle to Andrea's lot in London. He immediately arranged for automobile insurance on her behalf but without her authority. Near Kitchener he was involved in an automobile accident which resulted in the Jaguar being a total write-off. No 2 one was injured. He contacted Andrea and informed her of the situation. Taking consideration of the above circumstances:

a) Discuss and explain in detail the legal issue(s) raised.

b) Discuss what will be the outcome of the contract.

Answer rating: 100% (QA)

A This is a breach of the Agency agreement because He does not have ... View the full answer