Jack, as a disclosed agent for Mike, purchases two tons of wheat on credit from Bryan. According to the agency contract, Jack is entitled to make such purchases under Mike's name. However, Mike refuses to make payment. Which of the following is true?
A)Jack can make part-payment and thereby complete the sale.
B)Bryan can sue Mike for damages.
C)Jack can refuse payment to Bryan on the basis of an unauthorized sale.
D)Mike can sue Jack for wrongful purchase and terminate the contract.

Question

Jack, as a disclosed agent for Mike, purchases two tons of wheat on credit from Bryan. According to the agency contract, Jack is entitled to make such purchases under Mike's name. However, Mike refuses to make payment. Which of the following is true? ​
A)Jack can make part-payment and thereby complete the sale.
B)Bryan can sue Mike for damages.
C)Jack can refuse payment to Bryan on the basis of an unauthorized sale.
D)Mike can sue Jack for wrongful purchase and terminate the contract.

Quizplus · Accepted Answer

Bryan can sue Mike for damages because Mike is the principal in this agency relationship, and Jack acted within his authority when he made the purchase on Mike's behalf. Since the purchase was made under Mike's name and with his authorization, Bryan has the right to seek payment from Mike.

Jack, as a Disclosed Agent for Mike, Purchases Two Tons