Peter hired Quagmire as manager of Peter’s liquor store. Managers of liquor stores customarily have authority to order inventory
Peter hired Quagmire as manager of Peter’s liquor store. Managers of liquor stores customarily have authority to order inventory. However, Peter told Quagmire not to order any inventory without his prior approval. One day, a liquor supplier/distributor asked Peter if he wanted to buy any inventory. Peter replied, “Go see Quagmire, my manager. He will handle this entire matter.” Reasonably believing that Quagmire had authority to order parts for Peter, the supplier contacted Quagmire. Without Peter’s consent, Quagmire contracted to buy liquor from the supplier/distributor in violation of Peter’s instructions to him. What type of authority, if any did Quagmire have to contract on Peter’s behalf with the supplier/distributor? Is Peter legally obligated to perform the contract with the supplier/distributor?
