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aubree98 aubree98
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6 years ago
Apparent Authority. Red River Commodities, Inc (RRC), entered into a contract with Kelby Eidsness under which RRC agreed to purchase 250,000 pounds of sunflowers. Because of a drought, Kelby was only able to deliver 75,084 pounds. The contract contained a clause stating that if Kelby could not deliver the promised 250,000 pounds because of an event unanticipated at the time the contract was formed, Kelby would be excused from performance only if he seasonably notified RRC of his inability to perform. Kelby orally notified RRC's contracting representative, Richard Frith, who Kelby assumed was RRC's agent, about his poor crop in September before the harvest. RRC insisted that Frith was not a contracting agent and had no authority to bind RRC in any way. The RRC-Kelby contract included the following statement: The contracting representative identified below
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