Edward Writes to Judy,who Is in the Business of Purchasing

question 7

True/False

Edward writes to Judy,who is in the business of purchasing goods for others,telling her to purchase certain goods and ship them to him.Before answering Edward's letter,Judy does as directed and charges the goods to Edward.Judy was not authorized to do this because an agency relationship did not yet exist between Edward and Judy.

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Definitions:

Equitable Mortgage

A type of mortgage recognized by a court based on the borrower's intent and the lender's interest, even though the formal legal requirements of a mortgage are not met.

Enforceable

Refers to a rule, policy, or agreement that is legally binding and can be upheld or imposed by law.

First Mortgage

A primary mortgage on property that has precedence over all other voluntary liens or mortgages recorded against the property.

Registered

Officially listed or recorded by an authority to acknowledge legal status or compliance.