QUESTION TWO (2) A. Mr. Sam, a dealer in wine and spirits, contracted with Mr. Haruna, an agent, for the sale of GHC 150,000 worth of goods to Supreme Hotel, then in the process of incorporation. Upon its establishment, the management of Supreme Hotel rejected the items on grounds of poor quality and high price. What was the most Page 2 of 2 Frank Osei Tutu appropriate action open to Mr. Sam in the circumstances and why? (10 marks) B. In each of the following situations, state whether the stand taken by the principal is right or wrong and explain why. 1. Amadu, an agent signed a contract on behalf oh Paha, his principal. The third party was so pleased with the terms that he presented a gold watch to Amaduin appreciation. Paha however happened to hear of this from a different source altogether and so refused to ratify the contact. (5 marks) 2. P, a principal, authorised his agent, A, to purchase a quantity of maize on credit from a company for subsequent re-sale in anticipation of a good profit margin. Unfortunately, the demand for maize falls drastically soon after the purchase and the agent is forced to sell the lot at a loss. In order to settle the bill, P insists that A should pay for the loss. (5 marks) QUESTION TWO (2) A. Mr. Sam, a dealer in wine and spirits, contracted with Mr. Haruna, an agent, for the sale of GHC 150,000 worth of goods to Supreme Hotel, then in the process of incorporation. Upon its establishment, the management of Supreme Hotel rejected the items on grounds of poor quality and high price. What was the most Page 2 of 2 Frank Osei Tutu appropriate action open to Mr. Sam in the circumstances and why? (10 marks) B. In each of the following situations, state whether the stand taken by the principal is right or wrong and explain why. 1. Amadu, an agent signed a contract on behalf oh Paha, his principal. The third party was so pleased with the terms that he presented a gold watch to Amaduin appreciation. Paha however happened to hear of this from a different source altogether and so refused to ratify the contact. (5 marks) 2. P, a principal, authorised his agent, A, to purchase a quantity of maize on credit from a company for subsequent re-sale in anticipation of a good profit margin. Unfortunately, the demand for maize falls drastically soon after the purchase and the agent is forced to sell the lot at a loss. In order to settle the bill, P insists that A should pay for the loss