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Joe is hired by a real estate company to complete a roofing job on one of their projects. The job is very specialized, he is under no supervision, and he is paid when he completes the job. Joe, however, needs to order supplies to complete this job. Does Joe have the authority to enter into contracts with other businesses as needed on behalf of the real estate company to obtain his supplies?

Answer :

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Options:

Yes, Joe is an agent who has that authority.

No, Joe is an employee, but the employee does not have that authority.It depends whether Joe signed a written contract for his employment.

Yes, Joe is an employee.

No, not unless he possesses authority from the principal because Joe is an independent contractor.

Answer:No, not unless he possesses authority from the principal because Joe is an independent contractor

Explanation: An independent contractor is a third party engaged by a principal to transact certain specific jobs or accomplish a certain task on his behalf. An independent contractor does not have any power or authority to represent his or her principal especially when he or she is not authorized to do that on behalf of the principal.

JOE DOESN'T HAVE THE POWER OR AUTHORITY TO ENTER INTO ANY CONTRACT OR AGREEMENT WITH ANOTHER ENTITY FOR HIS PRINCIPAL EXCEPT WHEN GIVEN THE AUTHORITY TO DO SO.

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