Kevin, a Contractor, Was Advised by Several Persons in His

Multiple Choice

Kevin, a contractor, was advised by several persons in his community that Toby had been representing himself around the town, as being Kevinʹs agent and authorized to make home renovation contracts on his behalf. Kevin had in fact not authorized Toby to make these representations on his behalf but did nothing to address the situation. Two weeks later, Myra a homeowner, advised Kevin that she had made a contract to renovate her home with him through Toby and that if he did not carry out the work, she would take legal action against him. Which of the following statements is TRUE?

A) Kevin is not bound by the contract with Myra as Toby had no actual authority
B) Myra cannot enforce the contract against Kevin as she had a duty to verify that Toby had the authority claimed.
C) Kevin is estopped from denying that he has a valid contract with Myra.
D) Myra cannot enforce the contract against Kevin but can sue Toby for fraud
E) Kevin is bound by the contract with Myra but is free to adjust the terms of his performance