Question

Juan and Marie enter into an oral agreement that Marie will sell Juan's crusty herb garlic bread to gourmet food stores in the area. This works until Juan gets sick and no longer makes his bread. Marie is furious that Juan is unable to supply her with the popular bread and sues him for lost profits. A court is likely to rule:

Answer 1

Marie's authority to act as agent for Juan lapsed and the agency relationship is terminated

Step-by-step explanation:

Juan and Marie enter into an oral agreement that Marie will sell Juan's crusty herb garlic bread to gourmet food stores in the area. This works until Juan gets sick and no longer makes his bread. Marie is furious that Juan is unable to supply her with the popular bread and sues him for lost profits. A court is likely to rule MARIE'S AUTHORITY TO ACT AS AGENT FOR JUAN LAPSED AND THE AGENCY RELATIONSHIP IS TERMINATED