Question: Producers Ltd.'s Liability Because Producers Ltd. held Amy out as its representative, Tim was entitled to assume that Amy possessed authority to contract. The law
Producers Ltd.'s Liability Because Producers Ltd. held Amy out as its representative, Tim was entitled to assume that Amy possessed authority to contract. The law protects third parties who rely in good faith on a principal's representations. Even though Amy acted beyond her actual authority, Producers Ltd. may still be liable to Tim for breach of contract under the doctrine of apparent authority. If Tim placed an order for grade-A widgets based on Amy's representations, Producers Ltd. is bound to honour the contract as though Amy had full authority. Its refusal to deliver the goods therefore constitutes a breach of contract. Tim would be entitled to claim damages for any loss suffered due to non-delivery. explain and reword this
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