
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.
A) Attics, Inc.need not perform the refurbishment because Ellen did not have authority for the bid or contract.
B) Attics, Inc.must perform the refurbishment for $11,000 because Ellen had authority to enter into the contract.
C) Attics, Inc.need not perform the contract for $11,000 because Ellen made a mistake.
D) none of the above
Correct Answer:
Verified
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