Asked by Paola Reyes on Jul 02, 2024

Without Ted's knowledge, Phil, who frequently purchased lumber on Ted's behalf, purchased a large quantity of plywood from Chris as agent for Ted. Phil intended to advise Ted of the purchase later . If Ted had died before the contract was negotiated by Phil, the purchase agreement would be unenforceable, because the principal did not exist at the time when the agreement was made.

Unenforceable

Describes a contract or provision that is null and incapable of being upheld or enforced by law.

Principal

The original sum of money borrowed in a loan, or the amount of the investment.

Negotiated

The process of discussing to reach an agreement in business, employment conditions, or contracts.

  • Absorb the essential elements of agency law, which include the competence and legal liabilities of agents.
  • Determine the situations that culminate in the dissolution of an agency relationship and the consequent rights afforded to third parties.