John Agent Entered into a Contract with Joe Third Party

question 20

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

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Definitions:

Different Alternatives

Varied options or choices available in a given situation.

Psychological Adjustment

The process of adapting or coping with personal and environmental demands and stresses in an effective way.

Health Complaints

Reports of physical or mental issues, whether medically explained or not, that an individual believes impact their well-being.

Rational-Emotive Behavior Therapy

An approach to therapy that focuses on altering clients’ patterns of irrational thinking to reduce maladaptive emotions and behavior.