As part of a plan to start her own accounting firm, Jen contacted SEO, LLC, to build and market her website. SEO, LLC specializes in building websites and in search engine optimization.
After Jen and the general manager (GM) of SEO had discussed the website's design and price, Jen called the GM and authorized him to start work on the website at a contract price of $5,000. SEO began working on the website and had spent $2,000 when Jen called and said that she would not be moving forward with plans to open an accounting firm because she had not passed the final section of the CPA exam. Jen also refused to pay SEO anything, asserting that she was not obligated to pay since she cannot yet practice as a CPA and because there was nothing in writing. SEO had expected to spend an additional $1,000 to finish the website. SEO immediately stopped work and used their completed work for another client, earning $750 as a result. Please explain to what extent, if any, SEO is entitled to recover from Jen and why.

Answer rating: 100% (QA)

In this situation the key issue is whether there was a legally binding contract between Jen and SEO LLC and if so whether SEO LLC is entitled to recov... View the full answer