Question

Young was a purchasing agent for Wilson, a sole proprietor. Young had the express authority to place purchase orders with Wilson's suppliers. Young conducted business through the mail and had little contact with Wilson. Young placed an order with Vanguard, Inc. on Wilson's behalf after Wilson was declared incompetent in a judicial proceeding. Young was aware of Wilson's incapacity. With regard to the contract with Vanguard, Wilson (or Wilson's legal representative) will:

Answer 1

Answer Options:

A. Not be liable because Vanguard dealt only with Young.

B. Not be liable because Young did not have authority to enter into the contract.

C. Be liable because Vanguard was unaware of Wilson's incapacity.

D. Be liable because Young acted with express authority.

Answer:

B. Not be liable because Young did not have authority to enter into the contract.

Explanation:

Young was not an agent or did not enter into am agency contract with Wilson and so has no authority to enter into contract on behalf of Wilson. This however means that Wilson isn't liable for any damages that may have resulted from whatever actions Young must have taken on it's behalf such as the contract with Vanguard knowing Wilson's incapacity

Answer 2

As per the law, Wilson with respect to the agreement with Vanguard would be:

B). Not be liable because Young did not have the authority to enter into the contract.

• In the given scenario, Wilson must not be chargeable and the reason behind this is that Young was unable to have the power to get into the contract.
• Young had not been an agent and neither belong to an agency through which he could get the authority to be a part of the contract on Wilson's part.
• However, Wilson wouldn't responsible for any of the harm or damages that may occur throughout the project and since he is incapable, he would not be allowed to enter.

Thus, option B is the correct answer.

Learn more about "Proprietorship" here:

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