Express authority consists of the agent's: a. inability to ...

[frankwu]

Express authority consists of the agent's:
 a. inability to conduct business for the principal
  b. ability to mingle his funds with those of the principal
  c. ability to withhold services in the event of nonpayment by the principal d. ability to hold power of attorney for the principal
  e. none of the other choices

Question 2

Accord and Satisfaction. Kowalsky, a contractor, was required to make periodic payments to a union pension fund administered by Kelly, trustee for the union. Kowalsky and Kelly disagreed over the amount of money Kowalsky owed the union. After a number of heated discussions Kowalsky sent Kelly four checks totaling 8,500 and enclosed them in a letter saying: These checks are tendered with the understanding that they are full payment of all claims against Kowalsky. Immediately after receiving the checks, Kelly called Kowalsky and told him the checks were not going to be cashed but would simply be held and that Kowalsky still owed Kelly money because the 8,500 did not cover late charges on the deposited payments. Kowalsky did not ask for the return of the checks or stop payment. Kelly retained, but did not cash, the checks and sued Kowalsky for the late charges. Kowalsky claimed that retention of the checks constituted full accord and satisfaction of the debt. Who won, and why?

[briezy]

Answer to Question 1

e

Answer to Question 2

Accord and satisfaction
Kelly wins. After receiving the checks, Kelly immediately told Kowalsky that he would not accept the 8,500 as a settlement. Kowalsky never asked for the return of the checks. For accord and satisfaction to exist there must be a presumption that the payment was intended and was accepted as a settlement. Here, Kelly expressly denied any such intent. Therefore, Kelly is entitled to sue for the full indebtedness of Kowalsky.

[frankwu]

Thank you

[briezy]

Happy to help you