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Martha approval prior to signing

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Reference no: EM131160516

Martha hires Janet to work for her as a sales representative. Martha specifically tells Janet that any sale worth over $10,000 and any sale with a discount greater than 8 percent must have Martha's express approval. Janet signs a contract with a long-standing customer who is aware of the approval requirements that Martha imposes on her sales representatives. The contract calls for an 11 percent discount and is for the purchase of $25,000 worth of goods. Janet did not get Martha's approval prior to signing. Which of the following is true of this contract?

  • Martha is obligated to honor the contract.
  • Martha is not obligated to honor the contract.
  • Janet will be liable to the customer for the contract.
  • The customer has the option of avoiding the contract.
  • Janet has done nothing improper.

Reference no: EM131160516

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