Problem:
The Acme Life Insurance Company sends out 5,000 emails to prospective customers to announce that it has just hired Frank Unctious as its newest sales representative. Joan receives one of the emails and, being in the market for life insurance, calls Frank to set up an appointment. Frank stops by her house, and they discuss life insurance options. Joan says she will think it over and get back in touch. A few weeks go by, during which time Acme become disenchanted with Frank's inability to increase sales. Acme then fires Frank. After he leaves the office, Frank calls Joan to see if she has decided on a life insurance policy. He doesn't mention that he has just been fired. Joan says that she wants to purchase a policy, and Frank sets up a time that afternoon to stop by to visit Joan. He fills out the correct forms, which he still has in his briefcase, and stops by Joan's house. She signs the forms and gives Frank a deposit of $1,000.00. Frank tells Joan that she will receive the official policy in the mail in a few weeks but, since she paid the deposit, she is now covered (and assume that is a correct statement of how life insurance policies work). Frank manages to cash the check, which was made payable to Acme, and leaves town. A week later, Joan dies. Her heirs find the life insurance papers and make a claim for the proceeds to Acme. Acme says it has no knowledge of any policy and refuses to pay the proceeds. Under what theory of liability might the insurance company have to pay Joan's heirs? Explain your answer.
Answer must not exceed 100 words.