John Agent Entered into a Contract with Joe Third Party

question 7

Multiple Choice

John Agent entered into a contract with Joe Third Party to buy 50 stoves,payment to be made two weeks after John Agent picked up the stoves from Joe Third Party's warehouse.The stoves were picked up,but eight weeks later Joe still had not been paid.Joe found out that John Agent had been authorized to buy 50 stoves for Susan Principal.For some reason,John had not made it clear to Joe that he was acting as an agent,nor had he indicated that he was buying the goods for himself.Under the circumstances,which of the following is true?

• A) Third Party can successfully sue only Principal.
• B) Third Party can successfully sue only Agent.
• C) Third Party can successfully sue both Principal and Agent.
• D) Third Party can elect to recover from either Principal or Agent but not both.
• E) Third Party can ratify the contract with Principal.

---

Definitions:

Common Carrier's Hands

In transportation law, common carrier's hands refer to the possession and responsibility of goods by a common carrier, who transports goods for the public under regulatory guidelines.

Ambiguous Contract

A contractual agreement that is unclear or can be understood in more than one way due to vague or conflicting terms.

Sale-Or-Return

A sales agreement that allows the buyer to sell the goods and return any unsold items back to the supplier.

Risk Of Loss

Refers to the potential for financial loss in a transaction or investment, often concerning who bears the responsibility if goods are damaged or lost.