Julius, a Corps of Engineers field engineer, but not a contracting officer (CO), had significant responsibilities with the Caesar Dam Project. The Caesar Dam was
springing minor leaks, so Julius ordered 50 cases of duct tape to plug the leaks. He bought these from a prominent contractor – Brutus, Inc. Brutus assumed that Julius
had the authority to purchase necessary supplies for the dam, having discussed the Caesar job with him once. When Brutus submitted the invoice, the contracting officer
(CO) refused to pay because Julius, not being a contracting officer, had no authority to commit funds and buy for the government. Brutus was ready to kill but, upon
the urging of his attorney – who desired to make some money - instead filed a lawsuit against the Corps of Engineers demanding payment. Brutus’ attorney argued that
Julius had apparent authority to bind the government.
a.Define “apparent authority.”
b.Is Julius going to prevail in this lawsuit based upon the apparent authority argument? Explain why you concluded as you did.
Sample Solution