Adam is a traveling salesperson for Petri Corp.
Adam is a traveling salesperson for Petri Corp. Adam has expressed authority to solicit orders from customers and to offer a 5 percent discount if payment is made within thirty days of delivery. Petri has said nothing to Adam about extending credit. Adam calls on a new prospective customer, John’s plumbing firm. John tells Adam that he will place a large order for Petri products if Adam will give him a 10 percent discount with payment due in equal installment 30, 60,90 days from delivery. Adam says that he has authority to make such a contract. John calls Petri and asks if Adam is authorized to make contracts giving discounts. No mention is made of payment terms. Petri replies that Adam has authority to make discounts on purchase orders. On the basis of this information, John orders 10000 worth of plumbing supplies. The goods are delivered are are being sold. One week later john receives a bill for 9500, due in 30 days. John insists he owes only 9000 and can pay in three equal installment. Discuss the liability of Petri and John.
