Contract Dispute: Who is Responsible for Delivering the Computer?

Is Place Corporation Responsible for Delivering the Computer to Teal?

True

False

Answer:

It is possible that Place Corporation may be held responsible for delivering the computer to Teal in this situation, that is it is True. While Alto was authorized to work as Place's agent on customer service calls and to customize Place's software, it appears that Alto exceeded their authority by selling Place's hardware computers to Teal. Additionally, the fact that Alto pocketed the money that Teal paid towards the purchase of the computer and then left town raises concerns about the legitimacy of the transaction.

Explanation:

In the scenario provided, Place Corporation orally contracted with Alto to work as Place's agent on customer service calls. Alto was authorized to customize Place's software to the customer's needs on a commission basis but not to sell Place's hardware computers. However, Alto went beyond their authority and sold a computer from Place to Teal during a service call.

Teal, unaware that the computer was being sold at a reduced cost, paid $1000.00 towards the purchase. Alto then took the money and left town, while Place Corporation refused to honor the deal.

When determining Place's responsibility in this situation, it is essential to consider the specific details of the contract between Place and Alto, as well as any relevant laws. While Place may argue that they are not responsible due to Alto's actions, the terms of the contract and the laws governing the transaction will play a crucial role in deciding who is accountable for delivering the computer to Teal.