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:

Question

Social Studies

Mary Duke

8 September, 05:40

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:

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Answers (1)

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Little Bear · 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