Question

Dan Martin did business as Martin's Appliance. For years, he bought furniture from Independent Furniture. Martin's Appliance was sold to Struthers Appliance, Inc. and Martin became the manager, but Independent did not know of the ownership change. Martin ordered furniture from Independent, which was never paid for the furniture. Independent sued Martin for the amount due. He claimed that he was only an agent for Struthers' so could not be personally liable. Is Martin correct?

Answer 1

Answer: No. Martin did not disclose his status as an agent of Struthers.

Step-by-step explanation:

From the question, we are informed that Dan Martin did business as Martin's Appliance and that for years, he bought furniture from Independent Furniture.

We are further told that Martin's Appliance was sold to Struthers Appliance, Inc. and Martin became the manager, but Independent did not know of the ownership change and that Martin ordered furniture from Independent, which was never paid for the furniture.

We are the informed that Independent sued Martin for the amount due. He claimed that he was only an agent for Struthers' so could not be personally liable.

In the above situation, we can deduce that Martin is not correct. Martin did not disclose his status as an agent of Struthers. If he had disclose his Identity, he could not be personally liable but in this regard, he didn't.