In the Process of Assembling Land for Ace Construction Ltd

question 204

Multiple Choice

In the process of assembling land for Ace Construction Ltd. to build a supermarket, Joe entered into a contract with the seller Sam. In which of the following situations would Sam be able to sue the principal Ace?

• A) Where Joe revealed that he was acting as an agent, but did not disclose that he was acting for Ace in particular, and exceeded both his apparent and real authority. Ace did not ratify the contract.
• B) Where Joe disclosed that he was acting for Ace but made the contract "subject to ratification."
• C) Where Joe was acting outside his authority and did not disclose that he was acting for the Ace. Sam was aware of Joe acting independently at the time he entered into the contract.
• D) Where Joe exceeded his actual authority but where Ace had led Sam to believe Joe had the authority.
• E) Where Joe exceeded his apparent and actual authority.

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