I’m studying for my Management class and don’t understand how to answer this. Can you help me study?
QUESTION 1 (13 marks)
A. Ada was a wholesaler and retailer in the jewellery business. A friend of hers ,Roberta,
was an importer of fine jewellery and sold the jewellery in three shops that she owned.
There was no business connection between them.
Ada discovered that Roberta was importing jewellery at a much cheaper price than Ada
After making extensive inquiries, Ada located the name of Roberta’s supplier: Qualstone Co.
in Sri Lanka.
Ada contacted Qualstone and ordered jewellery pieces at $50 per piece. Ada signed the
contract in Roberta’s name but for Ada’s own financial benefit. She did not have the consent
of Roberta to enter the contract.
Roberta discovered the transaction and wants to obtain the benefit of the contract.
Advise Roberta of her legal rights.
In you answer you are required to refer to relevant legal authority
B. Peter wrote to Alan and asked him to buy 200 ladies Society Brand dresses for him at not
more than $60 per dress.
Alan went to Toselli warehouse and chose 200 Society Brand dresses. He did not tell Toselli
that he was acting on behalf of anyone. Alan signed a contract in his own name for the
purchase of 200 dresses at $60 per dress.
On discovering this transaction, Peter informed Toselli that he was Alan’s principal and
demanded that Toselli deliver the dresses to him. Toselli refused, claiming that the contract
was with Alan and would deal only with Alan.