When is a third party not bound by a contract


Discuss the below:

1. Port, while in Starboard's employment, had collected stationery supplies from Compass once a week. He is sacked by Starboard, but the following week collects the supplies from Compass, who has not been told that Port has been sacked. Port makes off with the stationery. Is Starboard bound to pay?

2. When is a third party not bound by a contract with an undisclosed principal?

3. When is an agent entitled to delegate performance duties?

4. When will mental incapacity not bring the agency relationship to an end?

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Business Law and Ethics: When is a third party not bound by a contract
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