Hi,
Principal in a suit store authorizes his employee (agent) to buy any suit from any supplier as long as it is in the color black only. The principal made it clear for the agent that he will not tolerate any other color.
The agent then meets with a third party supplier that have a range of suits in different colors. The agent sees a red suit and he is impressed by it a lot, so he decides to order the red suit thinking that it will impress the principal. The agent signed on behalf of the store for delivery of the red suit.
Upon delivery, the principal was outraged that the agent has ordered a red suit. Because of this, the principal refuses to authorise payment for the red suit. Question is, who is liable for the payment of the suit? Is it principal or agent? Can the principal bring a personal action against the agent?
Thanks
Principal in a suit store authorizes his employee (agent) to buy any suit from any supplier as long as it is in the color black only. The principal made it clear for the agent that he will not tolerate any other color.
The agent then meets with a third party supplier that have a range of suits in different colors. The agent sees a red suit and he is impressed by it a lot, so he decides to order the red suit thinking that it will impress the principal. The agent signed on behalf of the store for delivery of the red suit.
Upon delivery, the principal was outraged that the agent has ordered a red suit. Because of this, the principal refuses to authorise payment for the red suit. Question is, who is liable for the payment of the suit? Is it principal or agent? Can the principal bring a personal action against the agent?
Thanks