Implied authority consists of: a. the power to do whatever is ...

[student77]

Implied authority consists of:
 a. the power to do whatever is reasonable and customary to carry out the agency purpose b. the power to mingle the funds of the agent and principal
  c. limits on an agent's actions, so that the agent may only do what the principal orders, in writing or orally d. the power of the agent to withhold services if the principal fails to pay her
  e. the power of an agent to do whatever is authorized by the Uniform Agency Act

Question 2

Past Consideration. Rivendell Forest Products, Ltd., had a computer programthe Quote Screen systemthat allowed it to quote prices to its customers many times faster than its competitors. To keep the Quote Screen system a secret, Rivendell insisted that all of its employees, including Timothy Cornwell, sign a confidentiality agreement in 1988. Cornwell was employed by Rivendell from 1987 to 1990, when he left Rivendell to work as a marketing manager for the Georgia-Pacific Corp, a competitor. Cornwell introduced Georgia-Pacific to Rivendell's Quote Screen system. Rivendell sued Cornwell for, among other things, breach of the confidentiality agreement. The trial court held that the confidentiality agreement was not a valid contract because Rivendell had failed to provide consideration, such as a salary increase or a promotion, in exchange for Cornwell's promise to keep the Quote Screen system a secret. If Cornwell had signed the confidentiality agreement when he was first hired, would the result have been the same? Explain.

[sarah_brady415]

Answer to Question 1

a

Answer to Question 2

Past consideration
The question suggests that under different circumstances than existed in this case, Cornwell's initial hiring could have constituted consideration for his signing of the confidentiality agreement. There are two elements to consideration: (1) something of legal value given in exchange for a promise and (2) a bargained-for exchange. Hiring is something of legal value. Thus, the issue might be whether there was a bargained-for exchange: In consideration of your signing this agreement, you will be hired. If hiring is not interpreted as sufficient legal value for the promiseif something more is judged necessary (a higher starting salary than usual for the position, more responsibilities than would normally be given to a new employee with Cornwell's experience and education, and so on)then of course, it would not constitute consideration for a promise of confidentiality.