Mr and Mrs Hague entered into a contract with Hilgendorf by hiring Hilgendorf as an independent contractor. There are very specific rules when entering into this form of contract. Principals, in this case, are bound by their authorization of these contracts. The Hagues sent Hilgendorf a letter of termination of their real estate contract only 5 months in to their 12 month contract. One of the ways that a contract can be terminated is if both parties mutually agree to the termination. In this case, both parties did not agree, so the contract was still valid. A month later, Hilgendorf found a bona fide buyer and presented the case to the Hagues. The Hagues denied the offer, even though it was exactly what they had asked for. Another termination
