Aaron Wright is a sales agent for Grandfather Clocks Unlimited, and he has the company's explicit recognition of his ability to finalize sales contracts. He negotiated a sales agreement with Bhatti's Furniture Stores for the delivery of 50 clocks by the 30th of the month. Bhatti's did not receive the clocks on time to satisfy the customer orders they intended to fill. The principal is liable for making good on this promise because Aaron was acting according to which of the following?
A) specific performance
B) scope of authority
C) due diligence
D) statute of limitations

Question

Quizplus · Accepted Answer

Aaron Wright had explicit recognition of his ability to finalize sales contracts, which means he had the scope of authority to negotiate the sales agreement with Bhatti's Furniture Stores on behalf of Grandfather Clocks Unlimited. Therefore, the principal (Grandfather Clocks Unlimited) is liable for the breach of contract.

Aaron Wright Is a Sales Agent for Grandfather Clocks Unlimited