Flashcards Studio

Roast & Rail LLC owned a small coffee shop. Its owner, Nina, hired Maya as general manager for a new location. Nina told Maya, in a private email, that Maya could buy supplies and ordinary equipment but could not sign any equipment contract above $15,000 without Nina's written approval. Nina then introduced Maya to BeanWorks, a commercial-equipment vendor, as "the person handling our build-out purchases" and copied Maya on all negotiations from Maya's company email account.
Maya first signed two equipment orders under $10,000, and Nina paid them without objection. One week later, while Nina was traveling, Maya signed a $38,000 contract with BeanWorks for a larger roaster. BeanWorks did not know about Nina's private spending limit. When Nina returned, she complained to Maya but kept the roaster, used it for three weeks, and asked BeanWorks to adjust the installation. Nina then refused to pay the invoice, arguing that Maya lacked authority.
(a) Is Roast & Rail bound to BeanWorks on the roaster contract? Discuss actual authority, apparent authority, and ratification.
(b) If Roast & Rail is bound, what claim, if any, may Nina or the company have against Maya?