Anton Has Entered into a Contract with Donut Country Inc

question 30

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

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Definitions:

Business Owners

Individuals who own and have invested resources in a business, responsible for strategic decision-making and managing operations.

Large Sums

Considerable amounts of money, often involved in financial transactions or investments.

Independence

The state of being free from the control or influence of others, often referring to self-sufficiency in business operations.

Small Businesses

Enterprises characterized by fewer employees and lower revenue compared to larger companies.