Joint Ventures. In 1993, TOG Acquisition Co attempted to acquire the Orleander Group, a manufacturer of bicycle accessories, but failed for lack of financing. Orleander then granted to Herrick Co an exclusive right to negotiate for the sale of the business. In August, representatives of TOG, Herrick, and SCS Communications, Inc, signed a letter under which they agreed to work together to acquire the business of the Orleander Group. The letter agreement provided that the parties would contribute equal amounts of capital and that all of the terms of the acquisition required the approval of each party. On November 19, TOG and SCS told Herrick that it was out of the deal and, ten days later, acquired Orleander without Herrick. Herrick filed a suit in a federal district court against SCS and others, alleging, among other things, that the letter agreement was a contract to establish a joint venture, which TOG and SCS had breached. The defendants filed a motion for summary judgment. In whose favor should the court rule? Why?
Question 2
In the case of an undisclosed principal, a third party is unaware of the identity of the principal as well as the existence of an agency relationship.
a. True
b. False
Indicate whether the statement is true or false