Salesperson often does not give rise to contract

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Giving an order to a salesperson often does not give rise to a contract. A salesperson may be a soliciting agent , whose authority is limited to soliciting offers from third persons and transmitting them to the principal for acceptance or rejection. Such an agent does not have authority to make a contract that will bind the principal to the third person. The employer of the salesperson is not bound by a contract until the employer accepts the order, and the third person (customer) may withdraw the offer at any time prior to acceptance. In contrast, if the person with whom the buyer deals is a contracting agent with authority to make contracts, by definition a binding contract exists between the principal and the customer from the moment that the agent agrees with the customer. In other words, the contract arises when the agent accepts the customer's order. EXPLAIN WITH EXAMPLE

Reference no: EM133813142

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