A Chauffeur, Going Against Specific Instructions, Purchases a New Car

question 149

Essay

A chauffeur, going against specific instructions, purchases a new car on behalf of his employer. The employer has done nothing to lead the seller to believe the chauffeur has authority but is persuaded by the chauffeur to go for a drive before returning the vehicle. Explain the legal position of the parties.

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Definitions:

Due Diligence

The thorough investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party.

Reasonable Steps

Reasonable steps are measured and practical actions taken to achieve a particular goal or to comply with legal and regulatory standards.

Event

An organized occurrence, gathering, or activity designed for a specific purpose or objective.

Organizational Level

Organizational level refers to a specific layer within the hierarchy of an organization, each with its own responsibilities and functions.