Contract Law - Nature of employer's business
In determining whether a contract falls within the apparent scope of the employee's authority1 the employer's business must also be taken into consideration, since all employees employed to perform the same duty do not necessarily possess the same implied authority. Therefore, an employee who is employed to sell goods on behalf of his employer has no implied authority to give a warranty if his employer is a private person2, although if his employer is a dealer a warranty given by his employee will bind the employer, even though given contrary to his express instructions3. Where, however, the employer carries on a particular business, it's to be presumed that his employees possess the authority usually possessed by other employees in a similar position in the same kind of business4.
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Also in this section:
1170. Contracts made by an employee under express authority
1171. When authority is implied
1172. Estoppel
1173. Ratification
1174. Employer's conduct
1175. Apparent scope of employee's authority
1176. Nature of contract and circumstances of employment
1178. Notice of determination of authority
1179. Employer under disability
1180. Employer a minor
1181. Employer suffering from mental disorder
1182. Corporations
1183. Liability of trustees and personal representatives for employees' acts
1184. Crown's liability on contracts
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