Exam 17: Agency and Franchising

Gene Stone told the Harders that he was an agent for the Trouplow Corp.and was raising money for a local expansion program.He then proceeded to sell them fifteen $1000 12 percent bonds.In truth,the Trouplow Corp.had never heard of Gene Stone,but they did have 12 percent bonds available for local residents to buy.To recover the $15 000 paid,the Harders should sue

A real estate agent tells a purchaser that she has authority to sign a contract for sale of property on behalf of the vendor.The purchaser relies on that representation and signs an acceptance.The vendor refuses to complete the contract because the agent did not have authority to sign the contract on behalf of the vendor.The vendor will be bound to complete the contract.