Discussion 2- Business law
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Centennial College *
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Jan 9, 2024
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In this case, I will advise Kelly that first, Patrick, who estate agent, did not have the authority and rights
to sign a written offer on her behalf. Kelly should understand the duties of the real estate agent that
advertising the property, ensuring the purchasers do not contravene the bylaws of the property, and
listing, and checking the dimensions of the property ((DuPlessis et al., 2022, p322).
Kelly did not grant
any legal rights to Patrick to act on her behalf in the standard form listing agreement due to being well-
considered; therefore, Patrick did not have the legal right and authority to make a contract on her behalf
with Paul and Rick to sell her store. Patrick did not show the owner authority document when he made a
contract with Paul and Rick; therefore, this contract would not be legally binding. In the transaction, the
third part need to know the agent had authority from the principal or acting within the authority, the
contract will be bound (DuPlessis et al., 2022, p317).
The result is Kelly can refuse the contract or
written offer. Second, if Kelly fired Patrick, she would hire another real estate agent to sell her store
again, however, the issue would impact the sale price because of the gossip from the members of the
community or scare off potential purchasers due to the bad reviews. Even if the real estate industry is
not big, they are well-informed in the industry. In order to defend their rights, Kelly showed the written
offer and the standard form listing agreement that did not grant the legal right and authority to Patrick
on her behalf in the court.
Finally, Kelly accepts the written offer, but she refuses to cooperate with
Patrick and writes the bad reviews in his real estate agency. The sale price is not high, but it does not
lead to Kelly facing a loss of profit. If Kelly misses this offer, the next purchaser may not provide the same
price or give a price lower than expected; therefore, if Kelly accepts the offer of $250000 to sell her
store, the contract will bind her. If she did not sell her store to Paul and Rick, she would pay additional
fees such as a mortgage, rate of interest, and property tax, face the property's value lower or property
policy about purchase and sell. If she hires another real estate agent, she needs to understand the rule
of fiduciary duty, especially, the agent did not receive the profit from the buyer. The rules are that the
agent did not disclosure information that will affect the principal position to the other, avoid conflict of
interest and act for two principals in the transaction, and can not use principals' owner property to
secure personal gain (DuPlessis et al., 2022, p323).
References
DuPlessis, D., O'Byrne, S., King, P., Adams, L., & Enman, S. (2022).
Canadian business and the law.
Nelson
Eucation Ltd.
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