Michael Mosely works as a purchasing agent for Suharto Coal Supply, a Mosely has authority to purchase the coal needed by Suharto to satisfy the needs of its customers. While Mosely is leaving a coal mine from which he has just purchased a large quantity of coal, his car breaks down. He walks into a small roadside grocery store for help. While there, he runs into Wiley, who owns 360 acres back in the mountains with all mineral rights. Wiley, in need of cash, offers to sell Mosely the property at $1,500 per acre. On inspection, Mosely concludes that the subsurface may contain valuable coal deposits. Mosely contracts to purchase the property for Suharto, signing the contract, “Suharto Coal Supply, Michael Mosely, agent.” The closing date is set for August 1. Mosely takes the contract to the The managing partner is furious, as Suharto is not in the property business. Later, just before August 1, both Wiley and the learn that the value of the land is at least $15,000 per acre. Discuss the rights of Suharto and Wiley concerning the land contract.
