Reference no: EM132242218

Please discuss the correctness of the contentions of Nelder's executor and please explain which laws of Agency takes place.

Here is the question:

Nelder was the owner of a cannery in Minnesota. He made arrangements with Anderson, who owned a storage depot in New Orleans, to store 7,500 cans of red apples and 14,000 cans of green apples for sale in various states around Louisiana.

Nelder, needing $7,500, borrowed this amount from Anderson and pledged the cans of apples as security for the loan. The loan was due on August 10. As part of the loan agreement, Nelder, in writing, authorized Anderson to sell his goods that were being stored to satisfy the loan. Nelder became incapacitated, and the loan was not repaid. On August 15, Anderson offered to sell the cans of apples to Taylor. Taylor was interested in the green apples but was uncertain whether he wanted the red apples.

A contract for the sale of 14,000 cans of green apples for $8,000 was reached and performed. Both Anderson  and Taylor knew of the death of Nelder. On August 25, Anderson and Taylor signed a similar contract covering the 7,500 cans of red apples for $4,000. The apples were sold and payment made.

On August 27, Nelder's executor, having learned of these contracts, wrote Anderson and Taylor stating that Anderson had no authority to make the contracts, demanding that Taylor return the canned apples. Discuss the correctness of the contentions of Nelder's executor. Please explain.