Sam Is George's Agent

question 26

Multiple Choice

Sam is George's agent.George decides to fire Sam.Mel is an old customer of George's and he has dealt with Sam for over 20 years.Ellie is a prospective customer that Sam has spoken with on numerous occasions in his capacity as George's agent,and George was aware of the preliminary negotiations.Mel orders goods from Sam after Sam has been fired but Mel has no knowledge of the firing.Later,Sam takes an order from Ellie,who does not know of the firing.Using the rules of the Second Restatement,which of the following statements would apply to this scenario?

• A)George will be liable for the contract with Mel.
• B)George will not be liable on the contract with Mel.
• C)George will not be liable on the contract with Ellie.
• D)Both (a) and (c).
• E)Both (b) and (c).

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Adverse Effects

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