Anton Has Entered into a Contract with Donut Country Inc

question 29

Multiple Choice

Anton has entered into a contract with Donut Country Inc. to supply Donut Country with coffee. Anton never intended to be responsible under the contract personally. He intended to find a commercial coffee supplier to undertake the obligations and pay him a fee for giving the supplier the contract. He did not disclose any of this to Donut Country, which thinks that they have contract with Anton. Which of the following best describes the situation with respect to the contract?

• A) Anton would not be responsible under the contract if it is ratified by a coffee supplier.
• B) If a coffee supplier ratified the contract it would be considered an undisclosed principal.
• C) Anton is personally responsible under the contract despite his intentions.
• D) Anton is not responsible under the contract but would be liable to Donut Country for breach of warranty of authority.
• E) If a coffee supplier ratifies the contract, Donut Country would have the option of holding either Anton or the supplier responsible under the contract.

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Definitions:

Diverse Environments

Settings or contexts characterized by a rich variety of backgrounds, cultures, and perspectives among individuals or elements.

Stable Environments

Conditions or contexts that are consistent and predictable over time, providing a steady framework for operations.

Mechanistic Organizational Structure

A highly formal, rigid, and bureaucratic structure characterized by centralized decision-making, clear divisions of labor, and strict hierarchies.

Formalization

The process of standardizing policies and procedures within an organization.