Brief IRAC Format:Karsten was hired as a outside sales agent by Ling Company, a manufacturer of golf equipment and accessories. Karsten’s duties required him to visit golf pro shops at golf courses and other golf equipment and accessory retailers. It was common for an outside sales agent in Karsten’s position to have the power to make contracts to sell any item in his employer’s line of products. However, Ling Company instructed Karsten that he could not contract to sell any Ling golf shoes without first getting permission from Ling’s vice president of sales, Perez. Ling imposed this limit on Karsten’s authority, because Ling was temporarily having problems getting shipments of golf shoes from its supplier in China. Neither Ling nor Karsten, however informed pro shops or retailers of the limitation on Karsten’s authority. Nonetheless, Karsten, anxious to make a big sale, made a contract to sell 700 pairs of Ling golf shoes to Pro Golf Company. Was Ling bound to this contract with Pro Golf Company?
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