Question

Jason has participated in the flower auction for the last nine years as an agent for Holt Ltd. (Holt). Every occasion Holt had been given clear direction to buy whatever kinds of flowers he felt the store would need and be able to sell. There always was a wide array of flowers available at the auction; there were exotic flowers like orchids, as well as greenery like vines, and potted plants like camellia bushes and rose bushes. On this, occasion, the manger from Holt gave Jason express instructions to buy only cut flowers such as tulips, and stemmed roses. Jason was at the auction for an hour when numerous flats of young camellia bushes and rose bushes, all potted, were about to be sold. Jason thought about it and since the flowers were going for an excellent price, bought 2000 rose and camellia bushes, on behalf of the Holt Ltd. When Jason returned to the store with the 2000 bushes, the manager refused to accept them, saying that was not what he wanted and told Jason to buy. Jason insisted that these were excellent choices given the good price he paid for them, and in the conversation, noted to the manager, that he could always cut the flowers off, of the bushes if he wanted cut flowers.

A. What is the main legal issue?

B. Is Holt Ltd, bound to pay for the flowers Jason came back with

Answer 1

answer-

A- The main legal issues in this case are - " can Hold deny the authority of Jason as an agent to buy 2000 rose and camellia bushes? "

"Is Holt bound to pay for the flowers?"

B- Yes, Holt Ltd is bound to pay for the flowers Jason came back with because Holt is estopped from denying Jason's authority and liable to pay for the flowers because Jason as agent has the implied as well as apparent authority.

Implied authority means agent has the authority to make decisions or to perform acts that are reasonable and good for the principal's organization. Any transaction or contract made by agent under implied authority bind the principal as well.

For example- Jason was buying whatever flowers for 9 years so he has implied authority with express authority. so buying 2000 rose and camellia bushes binds the Holt to pay for the flowers.

apparent authority in which third party have impression that agent has the authority to act.Auction as third party sold the flower because they think Jason is the agent who is buying for 9 years so jason had the apparent authority to buy 2000 rose and camellia bushes and holt is liable to pay for that.