On January 1, 2001, Daniel Negotiated a Contract on Behalf

question 51

Multiple Choice

On January 1, 2001, Daniel negotiated a contract on behalf of Compu/sys Inc for the supply of a computer system to Leader Co. The contract called for the supply by Compu/sys Inc of hardware and maintenance services for two years in return for $1 000 000. Daniel had no authority to negotiate this contract on behalf of Compu/sys. Subsequently, after 18 months of negotiations, he got Compu/sys to agree to perform the contract in part. The corporation agreed to provide the hardware but not the maintenance services. At the time it made this commitment it had gone bankrupt. Which of the following is TRUE?

• A) Compu/sys has not ratified the contract because a bankrupt corporation cannot ratify a contract.
• B) If Compu/sys has not ratified the contract, Daniel will only be personally liable if Daniel and Leader Co intended that the contract would be binding on the agent personally.
• C) Compu/sys has not ratified the contract because it has not agreed to all of the obligations under the contract.
• D) Compu/sys has not ratified the contract because it did not agree to the obligations under the contract within a reasonable time.
• E) all of the above.

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Definitions:

Deep-Level Diversity

Refers to differences among group members' attitudes, values, beliefs, and personality, as opposed to surface-level traits such as race and gender.

Food Company

An enterprise that produces, processes, or distributes food products for consumer consumption, ranging from agricultural production to packaged goods.

Eating Food

The act of consuming edible substances to provide nutritional support for the body.

Sexual Equity

Parity among heterosexual, gay, lesbian, bisexual, and transgender employees.