Andy is an employee of Packing Corp. While he does not have - 11666

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  • Posted on: Mon 25 Jun, 2012
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Request Description

Andy is an employee of Packing Corp. While he does not have the authority to obligate Packing Corp. to contracts, his office, his behavior and his comments on the job—all known by Packing Corp.—make it appear that he does have authority to enter into contracts on behalf of Packing.  If he does enter into a contract, is Packing obligated by his statements? 

  1.  No, because he does NOT have actual authority.
  2.  No, because he was the only one who performed the behavior that would reasonably lead a third party to conclude that he is an agent of Packing.
  3.  Yes, if it is definite that Packing allowed Andy to appear to be an agent of Packing.
  4.  Yes, because he is an employee of Packing.

 

Solution Description

Andy is an employee of Packing Corp. While he does not have the authority to obligate Packing Corp. to contracts, his office, his behavior and his comments on the job—all known by Packing Corp.—make it appear that he does have authority to enter into contracts on behalf of Packing.  If he does enter into a contract, is Packing obligated by his statements?