P instructs A to purchase some jewellery from TP for no more than $50,000, and because she wishes to remain anonymous, P asks A not to disclose her identity to TP. In fact, A does not even disclose to TP that she is acting for another party in her negotiations with him.
TP refuses to sell for less than $60,000 and A, realising the potential value of the jewellery, agrees to pay $60,000 believing that P will consent to that price on learning of the circumstances.
In fact, P refuses to pay for the jewellery. Explain, with reasons, whether TP can enforce the contract against P (upon learning of her identity)
(i) Might your answer be different if A had disclosed that she was acting as P’s agent at the beginning of her negotiations with TP. Why or why not?
(ii) Could A be liable to TP in the circumstances set out in (i)? If so, on what basis? If not, why not?
(iii) Conversely, if on the facts you were originally given [ignoring (i) & (ii)], P had chosen to accept the contract entered into by A but TP refused to honour it, could P sue TP? Why or why not? [20 marks]