Andy, the owner of a window-washing business, instructed his secretary to make a
ID: 344493 • Letter: A
Question
Andy, the owner of a window-washing business, instructed his secretary to make an offer to Deluxe Apartments, to wash all the windows of the apartment buildings for $5 per window. The total cost of the project to be paid as soon as the work was completed. Deluxe Apartments accepted the offer.
Later, Andy sent a signed letter to Deluxe Apartments directing them to make the payment for the window washing work to his daughter, Sally. Andy completed the window washing work, and demanded that the payment be made to him. What are the rights of the parties? Please explain.
Explanation / Answer
In the above case, Deluxe apartments can refuse payments to Andy since the signed letter directs them to make payment to his daughter Sally. In case Andy can produce a written letter from his daughter authorizing him to collect payments, then it can be paid to Andy. Though Andy's and Deluxe apartments intentions are not to pull a fraud on each other but suppose Andy collects the payment and then Sally demands payments from Delux apartments. In the above scenario, Deluxe apartment would be in a soup.