When Del-Mar Development Corp. failed to pay real estate taxes on an office building it owned, the building was seized by tax authorities and sold to pay the taxes. The purchaser was Euclid Plaza Associates, LLC. The sale was not valid, however, until approved by a court. After the sale and before the court's approval of the sale, Del-Mar agreed to a three-year lease of the building with African American Law Firm LLC (AALF), which immediately began paying rent of $1,500 per month to Del-Mar. After the court approved the sale, Euclid claimed it was not bound by the lease made by Del-Mar with AALF.
Euclid wanted to evict AALF unless it paid $2,033 in monthly rent. Was Del-Mar acting as Euclid's agent within Del-Mar's actual and apparent authority when Del-Mar leased the building to AALF?