Jane and Joseph Sechrist Signed a Contract to Have a Swimming

question 21

Multiple Choice

Jane and Joseph Sechrist signed a contract to have a swimming pool built in their backyard for $10,000.The salesman for the pool company signed the contract as well on a space marked "Salesperson." Two days after the contract was signed,the salesman called the Sechrists back and asked them to come in and sign a new contract for $11,000 because the vice president had not approved the original price.Jane has checked the contract and discovered that there is no language that requires the approval of anyone other than the salesperson.Jane and Joseph can have their pool built for $10,000 because:

• A)the pool company was bound once Jane and Joe signed the contract.
• B)the pool company has ratified the contract.
• C)of misrepresentation.
• D)the salesman had at least apparent authority to bind the pool company.

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Definitions:

Credit Sales

Sales in which the customer is allowed to pay at a later date, typically used to increase sales volume.

Cash Collections

The process of gathering all payments or receivables from customers over a specific period.

Accounts Receivable

Money owed to a business by its customers for products or services that have been delivered or used but not yet paid for.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.