Olive, an agent for precision paving corporation, enters into an unauthorized contract with quality asphalt, inc., purportedly on precision's behalf. precision does not ratify the contract. liability may be imposed on
The correct option is this: LIABILITY MAY BE IMPOSED ON QUALITY TO PRECISION FOR ENTERING INTO AN UNAUTHORIZED CONTRACT. Since Olive is just an agent of Precision Paving Corporation, any company that want to do business with Precision corporation via Olive must ensure that the contract is authorize from the head office. Thus, it is wrong for Quality Asphalt to enter into an unratified contract with Olive.
