Bill was with his boss Mr. Big of Computer World Limited at the popular night club SHAG. His boss had alot to drink and was totally out of it. Mr. Big met Ms. Sandra a former model and introduced her to Bill. He told Sandra that Bill has the authority to act for him in any of the companies transactions. Bill in reality has never done so before. In fact Ms Sandra was quite aware of Bill’s status at the company as just a CSR and Mr Big rantings when he is drunk. Ms Sandra however colluded with Bill and entered into a contract for Computer World to purchase $1 million in printers from her.  Can this contract with Ms Sandra be enforced based on an agency relationship between Bill and his Boss Mr Big? Discuss with supporting case law.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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Bill was with his boss Mr. Big of Computer World Limited at the popular night club SHAG. His boss had alot to drink and was totally out of it. Mr. Big met Ms. Sandra a former model and introduced her to Bill. He told Sandra that Bill has the authority to act for him in any of the companies transactions. Bill in reality has never done so before. In fact Ms Sandra was quite aware of Bill’s status at the company as just a CSR and Mr Big rantings when he is drunk. Ms Sandra however colluded with Bill and entered into a contract for Computer World to purchase $1 million in printers from her. 

Can this contract with Ms Sandra be enforced based on an agency relationship between Bill and his Boss Mr Big? Discuss with supporting case law.

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