Artemis Has Entered into a Contract with Saskatoon Berry Pies

question 37

Multiple Choice

Artemis has entered into a contract with Saskatoon Berry Pies Inc for the supply of pies. After the contract was entered into, Artemis disclosed that he was negotiating the contract on behalf of ABC Food Mart, which operates three grocery stores in Regina, Saskatchewan. Which of the following best describes the situation with respect to the contract?

• A) Saskatoon Berry Pies is not bound to the contract because Artemis did not disclose that he was contracting on behalf of a principal until after the contract was entered into.
• B) Only ABC is liable under the contract to Saskatoon Berry Pies.
• C) Now that the principal's existence and identity have been disclosed, Saskatoon Berry Pies can hold either ABC or Artemis liable under the contract.
• D) Artemis cannot be held liable under the contract because he was not contracting on his own behalf.
• E) Artemis cannot be held liable under the contract, but will be liable for breach of warranty of authority.

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