Authority to hire a new manager for the firm

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Reference no: EM13983331

Ralph Smith, the owner of a medium-sized business which is operated as a sole proprietorship, gives his Vice-President for Personnel, Wanda Brown, authority to hire a new manager for the firm. Ralph gives Wanda detailed instructions about the salary she can contract to pay, etc., but tells her that under no circumstances can she make commitments regarding the new manager's pension. Wanda contracts to hire Nick Willy for the new managerial position. But to get Nick to sign up, she has to make certain specific pension commitments to him. Some years later, Nick sues Ralph for reneging on those pension commitments. What is the likely result of the lawsuit? Identify the relevant rule of law and explain, in detail, the arguments both parties will make, and the reason(s) for your conclusion (i.e., why one person wins).

Reference no: EM13983331

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