Ellen Fishman was hired by Attics, Inc., a company that does attic refurbishments and redesigns, to evaluate attics, provide homeowners with estimates, and, hopefully, sign them up with contracts for their attics. Ellen provided an estimate of $11,000 to the Kornbluths for a redesign of their attic. Because she was new at the job, Ellen forgot the demolition costs in the estimate. However, the Kornbluths signed a contract Ellen presented and put down a 10% deposit of $1,100. Attics, Inc.'s president has refused to do the attic for anything less than $15,000, what the estimate should have been. The Kornbluths have no experience with remodeling and had only one other estimate for the refurbishment, which was $12,500.

Question

Quizplus · Accepted Answer

Ellen, as an employee of Attics, Inc., had the apparent authority to provide estimates and enter into contracts on behalf of the company. The Kornbluths relied on this authority when they signed the contract and paid the deposit.

Ellen Fishman Was Hired by Attics, Inc