Gene Stone Told the Harders That He Was an Agent

question 30

Multiple Choice

Gene Stone told the Harders that he was an agent for the Trouplow Corp. and was raising money for a local expansion programme. He then proceeded to sell them fifteen $1,000 12% bonds. In truth, the Trouplow Corp. had never heard of Gene Stone, but they did have 12% bonds available for local residents to buy. To recover the $15.000 paid, the Harders should sue

• A) Gene Stone for breach of warranty of authority.
• B) Gene Stone for rescission of contract.
• C) both agent and principal on the breach of contract.
• D) for criminal prosecution of Gene Stone.
• E) the Trouplow Corp. on the tort of deceit.