Beele authorized McDonald to be his agent to go to Denver and purchase some real estate that
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and purchase some real estate that would be suitable to open up a
branch office for Beele’s business. He tells McDonald not to pay
more than $125,000 for the real estate. McDonald contacts York
to buy some real estate she owns. York calls Beele and Beele tells
York that McDonald is his agent to buy the real estate. Nothing
is mentioned about the $125,000 limitation. After negotiations
between McDonald and York, McDonald signs a contract purchasing
the real estate for $140,000. McDonald signed it indicating
on the contract that he was signing as agent for Beele.
Further facts show that the real estate is worth $140,000.
Which of the following is correct?
There is a fully enforceable contract between Beele and
York for $140,000.
Beele may enforce the contract with York for $125,000.
There is no contract between Beele and York because
McDonald did not have authority to purchase the real
estate for $140,000.York may require that Beele pay $140,000 because the
real estate was worth $140,000 not $125,000.
Related Book For
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
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