Cyrano Hired Roxanne to Purchase a Yacht

question 70

Multiple Choice

Cyrano hired Roxanne to purchase a yacht.Cyrano did not want sellers to know that he was the buyer because he was very rich and he thought that sellers would demand a higher price if they were aware of this.So he instructed Roxanne to inform the sellers that she was acting for an anonymous buyer.Roxanne followed these instructions and entered into a contract to purchase a yacht from Richard.However,Cyrano did not like the yacht that Roxanne selected and refused to pay the purchase price.Richard insisted that Roxanne herself pay the purchase price.If Richard sues Roxanne to enforce the contract against her,what will be the outcome?

• A) Richard will win because Roxanne did not disclose her principal's identity.
• B) Richard will win because Roxanne did disclose that she was acting as an agent,and not for herself.
• C) Richard will lose because Roxanne did disclose that she was acting as an agent,and not for herself.
• D) Richard will lose because Roxanne was acting as an agent with actual express authority.

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Definitions:

Supermajority

A requirement for a high percentage of votes, typically greater than a simple majority, to approve a proposal or motion.

Defensive Tactic

Strategies employed by companies to prevent or deter unwanted takeover bids or corporate raiders.

Flip-Over Provision

This provision is a defensive strategy used by companies in their shareholder rights plans to deter hostile takeovers, allowing shareholders to buy shares of the acquirer at a discount after the takeover.

White Knight

A friendly investor or company that acquires a corporation at fair consideration, often to prevent a hostile takeover.