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Perez hired Ahmed to open a tavern and manage it. Ahmed had past experience managing taverns

Ahmed entered into many contracts to get the tavern up and running.

One contract was with Caribou Coffee for delivery of coffee at a price of $5,000. Ahmed signed the contract as "Ahmed, manager of Perez's Tavern."

Perez's Tavern is now open for business. Perez sent the coffee back to Caribou, saying "We don't serve coffee here. Our customers come here for liquor."

Caribou has now sued Perez for breach of contract. In court, the judge heard evidence and then ruled that most taverns serve coffee.

Does Perez have to pay for the coffee?

No, because Perez has the right to serve whatever he wants in his tavern.

No, because Caribou should have checked with Perez before shipping the coffee.

Yes, because not everybody likes liquor.

Yes, because most taverns do serve coffee.