Paul's Plaids ("PP"), a Canadian flannel shirt manufacturer, hired Rosie to act as its agent in Australia. Under Rosie's agreement with PP, she is only authorized to enter into contracts with a value of Cdn $50,000 or less. PP has not done anything to tell the customers about this limit so potential customers are unaware of this restriction. Rosie negotiates a contract for a sale of Cdn $100,000 worth of plaid shirts with a Sydney department store, and signs the contract on behalf of PP. Is PP bound by the contract to sell $100,000 worth of plaid shirts?Explain

Answer rating: 100% (QA)

In this scenario Pauls Plaids PP may not be bound by the contr... View the full answer