Question
Alyssa Martin is a purchasing agent-employee for the DSH Coal Supply Inc. (“DSH”). Martin has authority to purchase the coal needed by DSH to satisfy the needs of its customers. While Martin is leaving a coal mine from which she has just purchased a large quantity of coal, her car breaks down. She walks into a small roadside grocery store for help. While there, she runs into Brian Grambow, who owns 240 acres in the mountains with all mineral rights. Grambow, in need of cash, offers to sell Martin the property for $1,500 per acre. On inspection of the property, Martin forms the opinion that the subsurface contains valuable coal deposits. Martin contracts to purchase the property for DSH Coal Supply, signing the contract DSH Coal Supply, Alyssa Martin, agent. The closing date is August 1. Martin takes the contract to her bosses. The CEO is furious, as DSH is not in the property business. Later, just before closing, both Grambow and the Corporation learn that the value of the land is at least $20,000 per acre. Discuss the rights of DSH and Grambow concerning the land sales contract. What kind of agency was Martin working under? Is it possible for her to benefit from the increase in value of the land?

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