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Harbor Bay Development hires Guthrie to act as its agent to buy a 100-acre waterfront tract of land from Frankie for $1,000 per acre. Harbor Bay does not want Frankie to know that it is the principal or that Guthrie is its agent. Harbor Bay wants the land for a new marina, and believes that Frankie may not sell the land for that purpose or may demand a premium price. Guthrie makes the purchase, signing only his name on the contract as the buyer and not disclosing to Frankie the agency relationship. Harbor Bay gives Guthrie the amount to pay for the land, but Guthrie absconds with the funds. Frankie soon learns of Harbor Bay's identity. Can Frankie enforce the contract against Harbor Bay? against Guthrie?

Operation Management, Management Studies

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