quick response

Caroline was employed as a receptionist for ABC Corporation. Her desk was located 

at the entrance of the corporate office and her duties were to greet customers, answer 

telephone calls, sort mail, and respond to general requests for information about ABC. One 

day, while all of the managers of ABC were out of the office, a representative of XYZ 

Insurance Co. stopped by to solicit ABC as a new client. He told Caroline that he wanted to 

find out whether ABC might be interested in canceling its present employee health insurance 

plan and adopting a plan provided by XYZ. Although Caroline explained that none of the 

ABC managers were in the office, the XYZ representative nevertheless described his 

company’s health insurance plan in detail. When Caroline reacted by stating that XYZ’s 

plan sounded better than the current ABC plan, the XYZ representative immediately 

produced a contract for Caroline to sign. Reluctantly, Caroline signed the contract accepting 

the offer to adopt XYZ’s insurance plan. If XYZ seeks to enforce the contract against ABC, 

is ABC bound to the contract? 

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