Ted was hired by In Flite, Inc. to purchase an airplane on its behalf. Without mentioning that he was making the purchase on behalf of the principal, In Flite, Ted bought a Cessna 310 from Sam. 2 weeks later, In Flite declared bankruptcy and cannot now buy the airplane.
Compare and contrast In Flite’s liability under the contract to purchase the Cessna with Ted’s liability under the contract to purchase the Cessna.