Construct a case study on the scenario given in the pictures

Case Question #4 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. She 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