P Enters into a Contract with a According to Which

question 21

Multiple Choice

P enters into a contract with A according to which A is to deliver a crate of P's watermelons to a customer in another State by a certain date.The delivery is delayed by flooding, and rather than allow the watermelons to perish, A sells them to local buyers along the way.P sues A for compensation.Could A successfully argue that they had the authority to sell the watermelons on P's behalf?

• A)Yes, because A had express authority to sell the watermelons.
• B)No, because A did not have actual authority to sell the bananas.
• C)No, because A should have tried to contact P to get instructions.
• D)Yes, because A had authority by necessity to sell the watermelons.

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Definitions:

Legally Obligated

It means being bound or required by law to do something.

Capacity

The legal competency to enter into agreements or contracts, often related to age, mental state, and understanding of obligations.

Valid Contract

A legally binding agreement between parties to do or not do certain things.

Avoid Liability

Strategies or actions taken to minimize or evade legal responsibility or penalties.