Suggested Time to Complete: 36 minutes
Robin and Wedding Gowns – Difficult
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This question should be answered using three IRAC structures. Please include all relevant key words in your answer.
Robin is a lawyer for a famous designer who makes custom couture wedding gowns. The designer has not granted Robin the authority to enter into contracts with clients. However, while the designer is busy attending an international fashion show, Robin emails the designer saying that she will meet with several new clients and sign their contracts on the designer’s behalf. The designer reads Robin’s email but does not communicate with Robin or the clients. Robin enters into a contract with the first client, Anna, for a custom wedding gown. Anna is unaware that Robin is not the designer and makes an initial payment of $5,000. Robin enters into a contract with the second client, Betty, for an alteration to a wedding gown. Betty is unaware that Robin is not the designer and does not make an initial payment. Finally, Robin enters into a contract with the third client, Corey, for a custom wedding suit. Robin informs Corey that she is acting as a lawyer for the designer, and Corey makes an initial payment of $2,000.
Is the designer liable to each of the three clients?
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To answer this question you should think about and discuss whether the designer is liable to either Anna or Betty as an undisclosed principal, and whether she is liable to Corey as a disclosed principal.
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