Solution-Martha approval prior to signing

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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Martha approval prior to signing

Reference no: EM131160516

Reference no: EM131160516

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