Dart Corp.dismissed Ritz as its general sales agent and hired Parker as its new general sales agent.Parker provided notice to Bing Corp. ,a retail outlet,that he was taking over as general sales agent and Bing was no longer authorized to make sales for Dart Corp.Ritz subsequently sold Bing Corp.goods to be delivered by Dart Corp.and accepted a standard 20 percent cash deposit for the sale of goods,which is common in the industry. In an action by Bing against Dart on the sales contract,which of the following is true?

A) Bing will win the lawsuit because Dart's notice was inadequate to terminate Ritz's apparent authority.
B) Dart will win the lawsuit because Dart's new agent provided notice to Bing that Ritz is no longer Dart's agent.
C) Bing will lose the lawsuit,because Ritz lacked any express or implied authority to make the contract.
D) Bing will lose the lawsuit because Bing was negligent while making a contract with Ritz.

Question

TONYA JOHNSON · Accepted Answer

Final Answer : B, Explanation :  If a third party gives proper notification to an agent with actual or apparent authority to receive it,the principal is bound as if the notification had been given directly to him.Similarly,notification to a third party by an agent with the necessary authority is considered notification by the principal.

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