Artemis Has Entered into a Contract with Saskatoon Berry Pies

question 16

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

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Definitions:

Produce Cheese

The process of making cheese from milk through coagulation, curdling, and pressing the solids.

Specialization And Trade

An economic strategy where individuals or groups focus on a narrow area of expertise to increase efficiency and trade with others for different goods or services.

Protectionism

Economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations to protect domestic industries from foreign competition.