Answer to Question #55247 in Law for Bob

Question #55247
MC sold boards. D was the director of sales for MC. His employment contract said he was responsible for managing the sales force, including promoting sales. Pricing decisions & overall sales strategy were the responsibility of the president.

D was approached by GB, another supplier of boards which had been asked to quote a large order. GB could not fill all the order itself and proposed that MC should submit a quote for what GB couldn't supply &, if MC were successful, it would pay over 50% of profits to GB.

D agreed to the deal with GB on behalf of MC. Next, MC quoted & supplied 2500 units. MC did not learn about D's agreement with GB until after receiving payment.

MC is reluctant to pay the 50% to GB & is considering whether there is any legal basis where could be argued that it is NOT OBLIGED to pay.

1. identify legal question & area of law involved in answering it
2. identify two principles of law that apply to D to help answer question
3. Arguments for MC & ones for GB
4. Should MC pay?
Expert's answer
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