Don signs contract on behalf of hogtown

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Juan, the CEO of Hogtown Corp., has retained Don to act as the agent for Hogtown Corp in a55 purchase and sale transaction for widgets with YYZ Inc. Juan calls Elena, the CEO of YYZ Inc., to advise her that Don will be in touch to conduct the negotiations, as the agent of Hogtown Corp. Privately, Juan tells Don that the maximum purchase price he is authorized to pay per widget is $0.55. In the current market conditions, it is not uncommon for companies to pay as much as $0.70 per widget.

Don and Elena engage in negotiations. Ultimately, Don signs a contract on behalf of Hogtown, committing Hogtown to purchasing the widgets at a purchase price of $0.62/widgets.

Juan is furious. Juan wants to know if Hogtown will be bound by this contract.

Conduct on IRAC analysis based on these facts. Use full sentences. Each individual must submit his/her/their own answers to receive credit for this activity.

Reference no: EM132172517

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