Briefing Case Essay
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Juana was the sole owner of cal fashions that designed and manufactured women’s clothing. She appointed Maria as Vice-president for purchasing and gave her total power to buy things the business needed. She informed all firms that Maria has full authority to purchase on behalf of the company.
The question arising is whether the agreement made between Maria and Tippy textiles forms a contract that is binding to Juana.
In order for a contract to bind both parties, the contractual parties must have authority and capacity.
When Maria was fired and authority to conduct purchases of fabrics on behalf of the company taken, she ceased to exist as an employ of Cal fashions. She no longer had authority to transact in the name of Cal fashions.
In conclusion, Juana is not liable in any way for Maria’s authority to act on behalf of the company.
Juana’s sister Isabel left for Houston for a fashion industry convention. Juana informed her that she did not have authority to make any contracts on behalf of Cal fashions. Isabel met with owners of several fashion outlets while in Houston area; Chris being one of them. They came to an agreement on terms of the sale of Cal fashions products and put them in writing and signed by both Isabel and Chris.
The question arising is whether the contract is binding to Juana.
For a contract to bind both parties there must be an offer, consideration and acceptance
The moment Juana sent an email to Chris confirming the arrangements made by Isabel, the contract became binding.
The conclusion is that the contract is binding to Juana since she did send an email confirming the agreement made between Isabel and Chris.
Juana appointed Melinda her realtor in Palm Springs to find a buyer for her house. Melinda entered into a contract with Steve for the purchase of the property.
Are Steve and Leonore liable to Juana concerning the property?
All transactions done by the agent on behalf of the principal are binding on both parties.
When Steve signed the contract, it became binding not because Steve was not the one buying the property for himself, but rather on behalf of Leonore.
The conclusion is that Leonore has to fulfill his part his part of the agreement made by Steve on his behalf.
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