Bar Exam Uniform Quiz
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BUSINESS ASSOCIATIONS AND RELATIONSHIPS
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A client, the sole proprietor of a custom furniture business, authorized her lead carpenter to purchase a specific type of rare hardwood from a supplier. She instructed him, "Buy the lumber, but do not agree to any long-term supply contracts." The carpenter went to the supplier and purchased the wood. The supplier then offered a 10% discount on all future orders if the business would sign a one-year exclusive supply agreement. Believing it was a good deal, the carpenter signed the agreement on behalf of the business. The supplier was unaware of the owner's specific instructions.
On what basis would the supplier have the strongest argument to enforce the one-year exclusive supply agreement? Select one.
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