From the throne room in your base station on Alpha Centauri-in the video game Galactic Empire-you dispatch your loyal, obedient minions to use their diligence and skill to loot the universe on your behalf and return with the treasure for its accounting and their compensation. Applying the agency principles outlined in this chapter, answer the following questions.
One minion, Delilah, does not return with gems and gold, but brings back three contracts. Acting within the scope of her authority, she contracted with Evon, who knew your identity at the time; Felipe, who knew that Delilah was acting on behalf of someone but not whom; and Giorgio, who did not know that Delilah was acting on anyone's behalf.
For which contracts, if any, are you liable?
To determine the liability in each contract, we need to consider the principles of agency outlined in this scenario.
1. Contract with Evon: Since Evon knew your identity at the time and entered into the contract with Delilah, who was acting within her authority, you would be liable for this contract. Delilah had the authority to act on your behalf, and the other party was aware of her agency relationship with you.
2. Contract with Felipe: Felipe knew that Delilah was acting on behalf of someone, but he did not know specifically that she was acting on your behalf. In this case, it would depend on the terms of the contract and whether it explicitly states that Delilah was acting as your agent. If the contract does not specify her agency relationship with you, you may not be liable for this contract.
3. Contract with Giorgio: Giorgio did not know that Delilah was acting on anyone's behalf. In this situation, if Delilah exceeded her authority or acted outside the scope of her authority, you would not be liable for this contract. Since Giorgio had no knowledge of Delilah's agency relationship with you, he may not hold you responsible for the contract.
It is important to note that the specific details of each contract and the agency relationship between you and Delilah would play a significant role in determining your liability.