Problem
Mona Lisa Company ("MLC") sought to buy classic paintings. MLC hired Bob Finder ("Finder") to acquire paintings for them. Finder's employment contract with MLC states, in pertinent part, that Finder shall be paid a commission for all paintings he locates within certain defined investment parameters. The contract also states that Finder may contract on MLC's behalf with regard to any of those paintings without disclosing that the contract is on behalf of MLC. Finder located a one million dollar ($1,000,000.00) painting within MLC 's investment parameters. Finder, in his own name, contracted to purchase the painting for MLC from Leonardo da Vinci ("da Vinci"), who owned the painting. Da Vinci did not know that Finder worked for MLC. Before the sale closed, da Vinci told Finder he wanted more money before he would agree to the sale.
The paper should address, but is not limited to, each of the following issues:
• "Agency" and the relationship it creates between principal and agent.
• Assuming that the contract between Finder and da Vinci is valid and enforceable by Finder, whether MLC may enforce the contract to purchase the painting from da Vinci if da Vinci fails to sell to Finder.
• What would be Finder's liability to MLC if Finder decides to purchase the property for himself and doesn't disclose it to MLC?