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McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
29) Agents have a fiduciary duty to their principals. Which of the following is FALSE with
respect to the fiduciary duty?
a. The fiduciary duty of an agent is a duty to act in good faith and in the best interests of the
principal.
b. The fiduciary duty of an agent requires the agent to avoid conflicts between the interests
of the principal and their personal interests.
c. The fiduciary duty of an agent requires the agent to disclose to the principal any
information that may be relevant to the principal’s interests.
d. The fiduciary duty of an agent may be breached even in circumstances where the
principal does not experience any loss as a result of the breach.
e. The breach of a fiduciary duty requires the agent to have committed actual theft from the
principal.
30) Artemis has entered into a contract with Saskatoon Berry Pies Inc for the supply of
pies. After the contract was entered into, Artemis disclosed that he was negotiating the
contract on behalf of ABC Food Mart, which operates three grocery stores in Regina,
Saskatchewan. Which of the following best describes the situation with respect to the
contract?
a. Saskatoon Berry Pies is not bound to the contract because Artemis did not disclose that
he was contracting on behalf of a principal until after the contract was entered into.
b. Now that the principal’s existence and identity have been disclosed, Saskatoon Berry Pies
can hold either ABC or Artemis liable under the contract.
c. Artemis cannot be held liable under the contract because he was not contracting on his
own behalf.
d. Artemis cannot be held liable under the contract but will be liable for breach of warranty
of authority.
e. Only ABC is liable under the contract to Saskatoon Berry Pies.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
31) The concept of “apparent authority” is also sometimes known as
a. actual authority.
b. ostensible authority.
c. reflective authority.
d. delegable authority.
e. mirror authority.
32) Which of the following business arrangements might not involve an agency
relationship?
a. joint venture
b. strategic alliance
c. distributorship
d. stockbroker
e. single transaction arm’s length sales contract between two businesses
33) Which of the following statements is TRUE with respect to franchises?
a. Although other arrangements are available for other types of business, a true franchise is
always concerned with the food-service industry.
b. A franchise arrangement always includes, among other things, an agency relationship.
c. Franchisors typically include a provision in their franchise arrangements that the
franchisee is not an agent of the franchisor.
d. Franchise agreements do not contain trademark licences.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
e. Franchisors do not worry about whether they may be held liable for actions of
franchisees because each franchise is a separate business.
34) A commercial representation agreement
a. occurs anytime that an agency relationship is created.
b. occurs when someone sells goods to a retailer on behalf of a manufacturer.
c. is always a type of franchise relationship.
d. is always governed by provincial partnership law.
e. is no longer legal in Canada.
35) Minnie and Maximum Realty Inc have entered into a real estate agency agreement. In
this situation, it is almost certain that
a. Minnie is legally known as the agent.
b. Minnie is legally known as the beneficiary.
c. the company has complete authority to purchase or sell a house on behalf of Minnie.
d. the company owes a fiduciary duty to Minnie.
e. Minnie owes a duty of care to the company.
36) Mathilde entered into an agreement with Pascal saying that she was acting on behalf of
Citron Used Cars to purchase cars. In fact, Mathilde had no actual or apparent authority to
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
do so. Moreover, Citron now refuses to ratify the agreement. In this situation, Pascal can
hold
a. Citron liable under the contract.
b. Mathilde liable under the contract.
c. Citron liable for breach of fiduciary duty.
d. Mathilde liable for breach of warranty of authority.
e. Mathilde liable for breach of fiduciary duty.
37) Rula hired Mike to act as her stockbroker. In that capacity, Mike was authorized to buy
and sell stocks on behalf of Rula as her agent. Rula paid very little attention to the details of
the transactions that Mike entered into on her behalf. She adopted a very different attitude,
however, after she received an anonymous tip that Mike was intentionally inflating the
commissions that he received for buying and selling stocks for Rula by making an
unreasonably large number of trades for her account. Which of the following statements is
TRUE?
a. Mike may be held liable for breach of fiduciary duty even if Mike made money for Rula
in the end.
b. Mike may be held liable for breach of fiduciary duty only if Rula can prove, as a result of
that breach, either that she suffered a loss or that Mike received a benefit.
c. Mike may be held liable only if he breached an express instruction from Rula.
d. Mike is liable for breach of his duty of care to Rula.
e. Mike is only liable for breach of a fiduciary duty if Rula can prove that she took
reasonable steps to monitor Mike’s behaviour.
38) Laurna hired Ned to act as her stockbroker. Ned purchased certain stocks on Laurna’s
behalf and at her specific direction. Ned advised her not to buy them, saying that they were
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
too risky, but she insisted. Because those stocks subsequently dropped in value, Laurna has
sued Ned for compensation. Which of the following is TRUE?
a. Ned may be held liable for breach of fiduciary duty because it is his job to prevent her
from making mistakes.
b. Ned may be held liable for breach of fiduciary duty because he did not act in Laurna’s
best interests.
c. Ned is not liable for breach of fiduciary duty even though buying the stocks was not in
Laurna’s best interests because he acted on her direct instructions.
d. Ned is not liable for breach of fiduciary duty because everyone knows that stocks can fall
in value.
e. Ned is not liable because stock brokers are governed by a licensing scheme.
39) Sharona entered into a contract with Deepak. Under the terms of that agreement,
Deepak was obliged to sell his car for $25 000 to Myrna. Sharona subsequently asked
Myrna to ratify the transaction and to actually pay the price to Deepak in exchange for the
vehicle. Which of the following statements is TRUE?
a. Myrna can acquire the right to receive the vehicle, while leaving the obligation to pay the
price on Sharona.
b. Myrna can ratify the contract if she has capacity at the time of ratification, even if she
lacked a capacity at the time that the contract was made.
c. Myrna cannot ratify the contract even if Sharona said, at the time of creating the contract,
that she was doing so on behalf of a person named Myrna.
d. If Myrna refuses to ratify the contract, Sharona cannot be held liable to Deepak on the
contract as long as she said, before the contract was created, that she was acting as an agent
for someone else.
e. Ratification can be effective only if Myrna expressly ratified the contract.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
40) For many years, Street Sounds Inc, a music retailer, purchased its supply of CDs from
Smithee Entertainment Ltd, a major music producer. And for all of those years, Smithee
Entertainment entered into those supply contracts by using Alan as its agent. Alan would
meet with the manager of Street Sounds, that manager would request a selection of CDs,
immediately pay for the order, and Alan would arrange for Smithee Entertainment to
deliver the goods to Street Sounds within one week. In March 2010, as he had done
countless times before, Street Sounds’ manager met with Alan, selected a number of CDs,
paid for the order by giving $15 000 to Alan, and was told that a shipment from Smithee
Entertainment would arrive within a week. What Street Sounds did not know,
unfortunately, was that Smithee Entertainment had fired Alan several days earlier. Because
it has not yet received any money from Alan, Smithee Entertainment refuses to deliver any
CDs to Street Sounds. Which of the following statements is most likely to be TRUE?
a. Because it had already fired Alan, Smithee Entertainment cannot possibly be held liable
for the contract in question unless it ratifies that agreement.
b. While it may enjoy other options, Street Sounds is certainly entitled to enforce the
contract against Alan.
c. Smithee Entertainment may avoid all liability to Street Sounds by simply refusing to
ratify the contract in question.
d. Smithee Entertainment may be held liable for breach of warranty of authority.
e. Street Sounds may be able to enforce the contract against Smithee on the basis that Alan
had apparent authority to contract even though his authority was terminated because no
such notice was given to Street Sounds of the termination of authority.
41) Gordon has created a new app that allows people to track their dog’s location via GPS
on their smartphone. Gordon wants to allow people to use the app for free. Fred, his brother
and a lawyer, is talking to one of his clients about the app and the client offers a sizeable
amount to purchase the license and for ongoing technical support. Fred agrees on behalf of
Gordon. When he tells his brother the news, Gordon says he’s okay with selling them the
license, but that they would have to find someone else to give support. Which of the
following statements is true?
a. The contract has been ratified by Gordon and is therefore binding.
b. Gordon has only ratified part of the contract and has therefore accepted none of it.
c. The contract cannot be binding because Fred had no authority to contract.
d. Gordon will not be able to offer the app for free if he accepted the contract.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
e. The contract has been ratified only if the company agrees to find another person to do
tech support.
42) Toby is buying a new car from a dealership. She is trying to negotiate the price with the
salesperson, but the salesperson says he doesn’t have authority to change the price. He
offers to get a manager, who will be able to give Toby a discount if it is possible. The
salesperson, wanting not to lose commission, asks another salesperson to come over just to
tell Toby there’s nothing that can be done to the price. However, the second salesperson
ends up giving Toby 20% off the sticker price. Which of the following is most likely true?
a. The dealership must ratify the contract for it to be enforceable.
b. Neither salesperson had actual or apparent authority, so the dealership isn’t bound to the
price.
c. The second dealer had apparent authority and therefore the contract is binding.
d. The second dealer had actual authority and therefore the contract is binding.
e. If the dealership had a policy to only give a maximum discount of only 10% then the
contract isn’t binding because the second dealer acted outside of his authority.
43) Romeo is an engineer and owns RR Consulting. His wife, Carmen, though not actually
involved in the company, often helps out around the office. One day, when Romeo is out
and Carmen is alone in the office, an agent representing XYZ Construction comes in to
contract Romeo’s services. Carmen tells the agent that she is one of the owners of the
company and that they would be willing to do the work. When he gets back, Romeo refuses
the job. Who bears the liability?
a. Romeo because he is the principal
b. XYZ Construction because they did not check to see if Carmen had authority
c. RR’s agent because he did not check to see if Carmen had authority
d. Carmen because she acted as if she was the principal
e. XYZ and Romeo are both liable under the terms of the contract
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
44) Hadi wants to buy a car, but he knows nothing about them. He asks his friend, Devon,
to act as his agent and buy him a car because Devon works as a mechanic. Devon contacts
Nadia, who is selling two cars. One car is in perfect condition and the other needs a new
part in the engine. Devon buys both and keeps the car in perfect condition, giving Hadi the
one that needs work. Which of the following is true regarding the situation?
a. Devon has breached his duty of care because he failed to recognize the problem with the
car.
b. Devon has breached his duty of care because he was not qualified to assess the quality of
a vehicle.
c. Devon has breached his fiduciary duty because his personal interests conflicted with
Hadi’s.
d. Devon was within his right because the option to buy the car could be considered
payment for services.
e. Devon acted within the scope of the agency relationship because he got Hadi a car so he
fulfilled his duty under the agency relationship.
45) Upper Cuff is a men’s clothing store. Upper Cuff contracts with Janis to be their buyer.
The contract states that Janis will be “employed to be an independent agent representing
Upper Cuff, able to make any contracts related to the buying or selling of inventory.” Janis,
on her first week on the job, contracts to sell Upper Cuff’s entire inventory to their
competitor, Lower Lapel. Which of the following statements is most likely true?
a. Janis could be liable because she breached her fiduciary duty to Upper Cuff.
b. Janis cannot be held liable because she acted within the actual authority granted to her by
her contract.
c. Janis can be sued for the tort of interference with economic relations because she is an
employee.
d. Janis cannot be held liable because Upper Cuff gave her apparent liability.
e. Janis could be held liable because she wasn’t qualified to do the job.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
46) Deanna has created a company, Text Styles, which sells a single product – gloves that
do not have to be removed when operating a smartphone. The supplier of the gloves lists
her on their website as an “authorized seller” of the gloves. If a customer had a complaint
about gloves purchased, which of the following would be true?
a. They could sue the supplier because Deanna is acting as their agent.
b. They could sue the supplier because Deanna is acting as a distributor.
c. They can sue both Deanna and the supplier because of vicarious liability.
d. They can sue the supplier because Deanna is a franchisee.
e. They could sue Deanna if the complaint was due to a tort she committed.
47) Lane is an employee working for Prairie Grains, a producer of genetically modified
grain based in Alberta. Acting as an agent, Lane makes a trip to Saskatchewan to make a
call to a new customer. While he’s away, Prairie Grains goes bankrupt. He makes a deal on
behalf of Prairie Grains to sell $35 000 worth of grain to the customer. Which of the
following is true?
a. The contract is unenforceable because a bankrupt company cannot contract.
b. The contract is enforceable because Lane acted with actual authority.
c. The contract is unenforceable because Lane is an employee, not an agent.
d. The contract is unenforceable because Prairie Grains did not ratify it.
e. The contract is enforceable because Lane acted with apparent authority based on his prior
dealings with the customer.
48) You have started a new company that manufactures curling brooms and are looking to
sell the product. Marco has worked as a distributor of curling supplies for the last 3 years
and has many connections in the area. You want to enter into a relationship with Marco in
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
order to help sell to the retailers in the area, but you are worried about liability under
contract. The best thing to do is
a. draft an agency agreement with Marco in which he has actual authority to sell the
brooms.
b. create a distributorship agreement in which Marco must provide warranty service.
c. license Marco as a franchisee who can sell the brooms himself.
d. create a distributorship agreement under you will sell at wholesale prices to Marco and
he will resell at retail prices to the retailers.
e. hire Marco as an employee to advise on how to distribute the goods.
Essay Questions
1) What are the purposes of the rules of agency?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
2) Jackson is the shipping clerk for Coldpoint Inc, an appliance manufacturer. For five
years, Jackson has regularly taken orders from Knight’s TV and Appliances Inc for
refrigerators. Jackson does not approve the orders himself. He submits them to the sales
manager. Once the sales manager has approved the order, an invoice specifying the price
and terms of payment is issued and signed by the sales manager. Each invoice is then sent
to Knight’s. A contract is formed on the terms of the invoice. Jackson then arranges for
Coldpoint to ship the refrigerators. In October, Knight’s gets an invoice in response to its
order for two refrigerators that is signed by Jackson. Knight’s calls Jackson and asks about
this change in procedure. Jackson says that he has been promoted and he can now approve
and sign invoices. Knight’s accepts this explanation. In fact, Jackson has not been promoted
and invoices still require approval by the sales manager. Can Knight’s rely on the invoices a
forming a contract for the two refrigerators enforceable by Knight’s against Coldpoint?
3) Ruby is a junior sales clerk employed in the sporting goods department of Lear’s, a large
department store. Because of her work she gets to know Basinger, the supplier of tennis
racquets to Lear’s. After talking to Basinger for some time, she asks Basinger if it would
agree to sell 100 tennis racquets to Lear’s for 10 percent less than the price Lear’s usually
pays if Lear’s would agree to send all its racquet stringing and repair business to Basinger.
Basinger agrees to this proposal. That afternoon, Ruby advises the president of Lear’s about
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
the deal she has worked out with Basinger. The president says that while she likes the price
reduction, Lear’s cannot accept the commitment regarding the stringing and repair business.
Lear’s has an existing commitment to send all such business to someone else. Is Lear’s
bound by the contract negotiated by Ruby? Can Lear’s accept the contract excluding the
commitment to send Basinger all the stringing and repair business? Can Ruby have the
contract ratified by Beaton’s, a competing department store? Is Ruby bound personally?
4) Janus entered into an agreement with Ashley under which he made Ashley his agent for
the purpose of selling his car. He agreed to pay Ashley a commission of 5 percent of
whatever price she could get for the car. A week later, he cancelled the agency
arrangement. At the end of the following week, Ashley showed up at his house with Simon.
In front of Simon, she told Janus that Simon was interested in buying the car and asked for
the keys so she could show it to him. Janus gave her the keys. An hour late she came back
with Simon and told Janus that she had agreed to sell the car to Simon for $10 000. How
would you describe Simon’s legal rights?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
5) Seldon owned several apartment buildings. Sheila is the president of Ivest-co Inc, a
corporation incorporated under the Canada Business Corporations Act. Sheila entered into
a lease with Seldon to rent some office space in one of Seldon’s buildings on behalf of
Invest-co. Seldon was confident that the lease would be enforceable against Ivest-co Inc
because the president of the corporation had signed the lease on behalf of the corporation.
Unknown to Seldon, the by-laws of the corporation said that the corporation could only
enter into leases if two directors of the corporation signed them. Discuss whether the lease
is enforceable.
6) MC Electric Inc sold circuit boards. Dortmund was the director of sales for MC Electric.
His employment contract said he was responsible for managing the sales force of five
employees, including promoting sales. Pricing decisions and overall sales strategy were the
responsibility of the president. In October, Dortmund was approached by GB Circuits Co,
another supplier of circuit boards which had been asked to quote on a large order from a
manufacturer of telephones, A-Tel. GB could not fill all the A-Tel order itself and proposed
that MC should submit a quote for what GB could not supply and, if MC were successful, it
would pay over 50 percent of its profits on the order to GB as compensation for giving the
MC the opportunity to bid and the introduction to A-Tel. Dortmund agreed to this deal on
behalf of MC. Subsequently, MC supplied 2500 circuit boards to A-Tel which were paid
for. MC refused to pay the 50 percent commission to GB. Is there any legal basis upon
which it could be argued that MC is NOT OBLIGED to pay the commission? Do you think
that MC will be successful in avoiding payment?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
7) Alice entered into an agreement with a real estate agent to help her find a house in
Windsor, Ontario. Alice found a house that she wanted and asked the agent to present an
offer on Monday. The agent got busy with some other work and did not present the offer
until Wednesday. Unfortunately for Alice, the owner of the house accepted another offer
presented on Tuesday. Describe the bases upon which Alice could seek relief from the
actions of the agent.
8) Shari entered into an agreement with Taiga Developments Inc under which she would
act as an agent to find real estate for Taiga to buy in a suburb of Regina, Saskatechewan.
Taiga had told her that it wanted to buy up all the land and buildings in a three block area to
build a mall. No one but Taiga and Shari knew about Taiga’s plans. Shari found a piece of
property for sale across the street from the area Taiga was interested in for a great price.
She knew that once the mall went in the property would be worth much more than it was
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
today. Shari bought the property and then sold it after Taiga had built the mall for twice
what she paid. Did Shari breach her fiduciary duty?
9) Sureet has a small gardening business. He recently won the lottery and had $50 000 to
invest. He went to James, a stock broker, and told him that he would like to invest his
money in shares that would give him a high return because he would be relying on this
money to fund his retirement. He told James that he had few other assets and needed to
grow this investment into a substantial sum if he was to live on it when he retired in 20
years. He said that he was relying on James because he had no investment experience.
James recommended investing in options, a strategy which, if successful, would yield high
returns. James did not explain to Sureet that there was a substantial risk that he could lose
all his money. Sureet, attracted by the prospect of the high returns agreed to give all of the
$50 000 to James to invest in options. Within six months all the money was gone. James
was not negligent in how he pursued his options trading strategy, it simply was not
successful. However, James did not keep Sureet informed on a regular basis about the
losses. Sureet is now very angry and frustrated. Does Sureet have any claim against James?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
10) Bruner and Santos have entered into a joint venture for the purpose of building a
housing development. They call the joint venture Brantwood Housing. Santos will provide
the financing, and Bruner will build and sell the houses. Under the terms of the joint
venture agreement, the profits from selling the houses will be split evenly between Santos
and Bruner, and Santos agrees that expenses incurred by Bruner for the purpose of building
the housing development “will be the responsibility of Bruner and Santos, to be shared
equally.” Bruner enters into a contract on behalf of Brantwood Housing with an Internet
service provider, ISP Inc, to host a website for advertising the houses built by Brantwood
Housing for $100 per month. Bruner defaults on the payments required under the contract.
ISP Inc was not aware of Santos involvement in Brantwood Housing until it began
investigating the joint venture after Bruner defaulted on the contract. Is Santos liable to ISP
Inc?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
11) Orestes was employed as the manager of Coral Gables Horse Farm, a business carried
on by Coral Gables Inc. Orestes was responsible for the day-to-day operations of the farm,
including the care and maintenance of the horses and the management of the staff. Calum
owned all the shares in the corporation and was the sole director and officer of Coral
Gables Inc. He was the only one who had authority to buy new horses. In January, Calum
asked Orestes to go to the local horse dealer and buy two stallions. Orestes bought the
horses. Orestes thought that he had been given a general authority to buy horses for the
farm, but that was not Calum’s intention. In February, Orestes went to the horse dealer
without Calum’s permission and purported to buy from the horse dealer two more stallions
on behalf of the corporation. When the horse dealer delivered the horses and asked for
payment, Calum refused. Can the horse dealer enforce the contract? If not, does the horse
dealer have any other remedy?
12) Mireille recently sold her house in Kitchener, Ontario, through a real estate agent, and
she is not very happy about the service she received. The agent, Emily, did not listen to her
instructions. For example, Mireille told Emily that she would not allow the house to be
shown to people on weekend mornings. Emily showed up with clients on several weekend
mornings anyway. Emily was always late for appointments and did not work very hard to
sell the house. She never had an open house. Eventually Mireille sold her house to a friend.
She feels she got no service of value from Emily and paid a commission of 6 percent of the
$300 000 price ($18 000). Is there anything that Mireille can do?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
13) Explain how a third party can determine the scope of an agent’s authority to bind the
principal it represents?.In your answer, specifically identify barriers make it difficult for a
third party to discover an agent’s authority.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
14) How can a principal manage the risk that an agent will commit the principal to
contracts that it does not want to be bound by?
15) Knowing that Michele is looking for a house, Fatima negotiated a contract for her to
buy a house from Owen. Fatima and Owen have agreed on the price, the deposit, the
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 20: Agency and Other Methods of Carrying on Business
closing date, and all other relevant terms of the deal. Michele, however, has not authorized
Fatima to negotiate this transaction on her behalf and had no knowledge of what Fatima
was doing. When Fatima tells her, however, Michele is delighted by the house and all the
terms of the contract except for the deposit of $20 000 that Fatima and Owen have agreed
to. Is it possible for Michele to accept this contract with Owen, such that it becomes a
binding obligation between them, but not accept the deposit requirement to which she did
not consent?
