Adam is an agent for Fish Galore, Inc. Adam has express
authority to solicit orders and receive payments in advance of
shipment. He is well known as an agent in the region. One of his
customers, Seafood Quality, has been a regular customer for five
years, has usually made large orders, and has always paid Adam in
advance to get the discount offered by Fish Galore. Fish Galore
learns that Adam has incurred large gambling debts and has recently
used some of the customers’ payments to pay off these debts. When
Adam cannot reimburse Fish Galore, he is fired. Fish Galore hires a
new agent and publishes in the regional newspaper that the new
agent will be covering the territory. Desperately in need of cash,
Adam solicits a large order from Seafood Quality and receives
payment. Then he calls on a new customer, Catfish Heaven, who also
gives Adam an order any payment. Adam absconds with the money. Fish
Galore refuses to honor either order. Seafood Quality and Catfish
Heaven claim Fish Galore is in breach of contract. Neither Seafood
Quality nor Catfish Heaven saw the article that noted that a new
agent had been fired by Fish Galore. Discuss fully all their
claims.