Shashi, who is now a director of Organicola Pty Ltd, meets
with Serafina, the CEO of Witch Networks (an online marketing company).
Serafina tells Shashi about Witch Networks’ innovative new marketing system.
Shashi is convinced that the system is ideal for the distribution of
Organicola’s products, and offers Serafina $500 000 for a 2-year licence.
Serafina produces a licensing contract and Shashi signs the contract ‘for and
on behalf of Organicola Pty Ltd’. A week later Johnny receives the contract. He
is not as enthusiastic as Shashi about the marketing system. He contacts Witch
Networks and tells them that Organicola will not be proceeding with the
arrangement. Can Witch Networks enforce the licensing agreement against
Organicola? In your answer, consider whether Shashi was acting with:
(b) implied actual authority; and
(c) apparent authority.