Question

A real estate agent works for a property owner who is outside of the country. The owner has dozens of buildings around the city. The agent is hired to sell one of the properties. After the sale is completed, the agent receives a very strong bid on one of the other properties. The agent sells the property and transfers the proceeds to the owner. Six months later the owner tries to recover the property, claiming that he never gave the agent authority to sell. Under what legal principal will the sale be upheld?

Answer 1

The sale will be upheld under the legal principle of agency law, which grants authority to agents to act on behalf of the principal.

Step-by-step explanation:

The legal principle that will uphold the sale in this situation is the agency law. According to agency law, an agent has the authority to act on behalf of the principal and bind the principal to contracts.

In this case, the real estate agent was hired by the property owner to sell one property, but received a strong bid on another property. Even though the owner claims that he never gave the agent authority to sell, the agent's actions can be considered within the scope of his agency and therefore the sale can be upheld.

It's important for property owners to clearly define the authority and limitations of their agents through written agreements to avoid any misunderstandings or disputes.