Question

Sid worked as the agent of Rosemary. Rosemary was in the business of buying antique clocks and selling them to the public. She became so successful at this that people began to become reluctant to sell to her, feeling that if she was buying the clock, it probably could be sold for more. Rosemary instructed Sid to purchase several clocks but not to reveal that the purchases were being made on her behalf. Sid contracted to buy several clocks and gave his own check as down payment to keep Rosemary's identity concealed. Although Rosemary had authorized the contracts, she reneged on the contracts. Sid thereupon told the seller what had happened and stopped payment on the down-payment check. The seller of the clocks sued Rosemary on the bounced check and for breach of contract. Sid was sued on the same causes of action. Decide all cases and please state your answers with supporting analysis.

Answer 1

Seller can claim the amount from Rosemary even though if they didn't know if Sid was acting as an agent as Rosemary is the one who hide this fact, and Seller has acted upon good faith.

Although Rasemary can further sue Sid and recover the payment or the antique clocks she bought from the seller. The final liability will be of Sid.

And she can't claim the ownership of the clocks even if she made payments as she had entered into an contract alreday with Rosemary (verbal contract ) to buy on its behalf but not desclosing it.

Hope this meets your purpose.

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