Town Center (TC) owns a shopping center in Derby, Kansas. It leased space to Empire Lending for

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Town Center (TC) owns a shopping center in Derby, Kansas. It leased space to Empire Lending for a two-year term (Lease 1). The space could not be sublet without permission of TC. Bayer, a branch manager for Premier Mortgage, executed a lease of the premises from Empire that stated the lease could be ended at any time on five days' notice (Lease 2). TC was unaware of that arrangement.

1. The appeals court affirmed that Bayer, as branch manager for Premier, had apparent authority to enter into a lease with Town Center for office space. How could Premier have avoided the outcome?
2. Did Bayer breach a duty she owed to Premier? Do you think it was intentional?

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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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