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

Question

Kornbluths signed a contract Ellen presented and put down a 10% deposit of $1100. 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. Attics, Inc terminated Ellen. However, Ellen still had all the materials, books, contract forms, and her card from Attics, Inc Ellen went out and got three homeowners to sign contracts for refurbishments for prices ranging from $15,000 to $22,000. Attics, Inc:
A) need not perform any of the contracts because Ellen lacked authority.
B) need not perform any of the contracts because the termination ended all of Ellen's authority.
C) must perform on the contracts because Ellen had lingering apparent authority.
D) Both a and b

Answer 1

C