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:

Limited Liability Corporation

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Sole Proprietorship

A business structure where a single individual owns and operates the entire business, bearing all financial risks and responsibilities.

Partnership

A lawful business structure involving two or more people who distribute both the management responsibilities and the profits.

Sole Proprietorship

A business structure where a single individual owns and runs the business, responsible for all its debts and liabilities.