Sally's Gym continues to grow its membership. Once her new strength facility is finished, it

ends up becoming one of the more popular parts of her gym, and is responsible for most of her

growth. She decides that she wants to increase her coaching in this area and get some more

strength training equipment so her gym will be better outfitted for experienced, competitive

weightlifters. However, she is not very experienced in this area and isn't sure what to buy.

Thus, she hires Chad to help her outfit her gym.

Chad is a former college football player and is now an experienced weightlifter and strength and

conditioning coach. He agrees to help Sally find some equipment for her gym, and is thinking

about coming on full time with Sally as a weightlifting coach/trainer for her gym. They have the

following conversation:

Sally: I want my strength training facility to be attractive for serious, competitive

powerlifters and Olympic lifters. But I'm not sure exactly what equipment I need or

where the best place to get it is.

Chad: I can help you with that. I have a lot of connections in the strength and

conditioning world, particularly at college facilities. Top college football teams tend to

replace their strength equipment pretty regularly, and their used equipment is usually still

in great shape. They will often sell it off at a great price. You just have to know the right

people to get in contact with.

Sally: That sounds great! I have $20,000 to spend. You go talk to your contacts, and if

you find me good equipment you can agree to purchase up to $20,000 of equipment for

me.

Chad begins to look for equipment for Sally. He finds a university that is holding an auction for

its strength and conditioning equipment, but the auction requires an invitation to attend and bid.

With Chad's contacts, he is able to get invited. At the auction, the college football team's entire

strength equipment is being sold. Chad knows this equipment is very high quality, and would be

perfect for outfitting Sally's Gym. As the bidding continues, eventually the price gets up to

$30,000. Chad knows that this is more than Sally has budgeted, but he feels like this equipment

is really worth around $40,000 to $50,000, and that Sally's Gym will be the premier weight

training facility in the area if he can get it. Ultimately, he ends up winning the auction with a bid

of $32,000 on behalf of Sally's Gym.

When Chad tells Sally about what he did, she is furious. She says "I don't care how good the

equipment is, I don't have $32,000!" The auction company contacts Sally to get the $32,000 for

the equipment and schedule delivery to her gym. S

he tells them that she will not pay for the

equipment, because Chad did not have the right to pay that much for it. Evaluate this legal

situation, and explain who is responsible to pay for the equipment, and why.

help with who has to pay for equipment and why