Question

Joe Broker finds a tenant for the landlord with whom Joe has a brokerage agreement. The tenant's deposit check bounces and the landlord takes Joe to small claims court to recover the funds. What is the result?

A. Joe loses. He was responsible for checking the financial statement of the tenant.
B.Joe loses since he is strictly liable for the tenant's statements.
C. Joe loses because he owes a duty to the landlord to procure a reliable tenant.
D. Joe wins because he has no duty to check the financial statement of the tenant.

Answer 1

C

Step-by-step explanation:

as a broker of the landlord Joe owes his principal a duty to procure a reliable tenant. and as such he is in breach of the brokerage agreement.