What is the main legal issue

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Joe is an employee and agent for Harry's Fine Cars Ltd. The manager, Fred, told Joe that he had no authority to make any sale, take a trade-in, or otherwise deal with the vehicles without Fred's express approval of every deal. Sam, a customer, came in wanting to buy a used Cadillac and agreed to pay the $60,000 asking price. Unfortunately, Fred was away from the lot, and so Joe took it upon himself to write up the agreement. When back, Fred reviewed the contract and was happy with it. However, the customer came back saying he not like the deal and wanted a full refund.

-What is the main legal issue?

-Must Fred honor the contract? Did Joe have the authority to bind the seller in contract? Explain with reasons.

Reference no: EM132969912

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