1. Did Joy act outside of her authority? Based on your answer, who is liable to Office Supply under the contract and for how much? 2. Can CCU ratify the contract? If they do, how much will CCU be responsible for under the contract?
Joy is a purchasing agent and purchases equipment and supplies for Coastal Carolina University. She completes these tasks for many organizations and has purchased on behalf of CCU for 10 years. Gerry, a CCU corporate officer, walks into Joy’s office headquarters in downtown Conway on his way to lunch at the Crafty Rooster.
Gerry walks into Joy’s office and gives Joy authority to buy for CCU as many shelving units and paper supplies as necessary. The next day, Gerry emails Joy and tells her to buy only 50 shelving units and nothing else.
After receiving Gerry’s email, Joy then goes to Office Supply, Inc., from whom she has ordered supplies for CCU before, and enters into a contract to buy 60 shelving units and a selection of writing supplies, pens and paper. Office Supply ships the order to CCU.
1. Did Joy act outside of her authority? Based on your answer, who is liable to Office Supply under the contract and for how much?
2. Can CCU ratify the contract? If they do, how much will CCU be responsible for under the contract?
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