Dan, an Agent for Ramona, Sees What He Thinks Is

question 31

Essay

Dan, an agent for Ramona, sees what he thinks is a good deal for Ramona. Without asking whether he has authority to negotiate the deal, Dan enters into a contract on Ramona's behalf. Ramona says later that she isn't interested. Is Ramona liable on the contract? Is Dan liable on the contract? Explain.

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Definitions:

Land Dispute

A disagreement over the ownership, boundaries, or use of a piece of land.

Social Network

A platform or structure made up of individuals or organizations interconnected by one or more types of relationships, such as friendship, kinship, common interests, or shared services.

Disposition-based Trust

The tendency to rely on others based on one's general propensity to trust, rather than on specific information about the individual.

Psychological Contract

The unwritten set of expectations and obligations between employees and employers regarding the nature of their working relationship.