19-2. Duty of Loyalty. P'eter hires Alice as an agent to sell a picue of property he owns. The price is to be at least $30,000. Alice discovers that the fair market value of Peter's property is actually at least $45.000 and could he higher bocause a shopping mall is going to be builk nearby. Alice forms a real estate partnership with her cousin Carl. Then she prepares for Peterk signature a contract for the sale of the properry to Carl for $32,000. Peter signs the contract. Just before clos- ing and passage of title, Perer learns about the shopping mall and the increased fair aurket value of his property. Peter refuses to deed the property to Carl. Carl claims that Alice, as Peter's agent, solicited a price above that agreed on when the agency was Crcated and that che contract is therefore bind- ing and enforceable. Discuss fully whether Peter is bound to this contract. (See Duties, Righta, and Remedies of Agents and Principals.)

19-2. Duty of Loyalty. P'eter hires Alice as an agent to sell a picue of property he owns. The price is to be at least $30,000. Alice discovers that the fair market value of Peter's property is actually at least $45.000 and could he higher bocause a shopping mall is going to be builk nearby. Alice forms a real estate partnership with her cousin Carl. Then she prepares for Peterk signature a contract for the sale of the properry to Carl for $32,000. Peter signs the contract. Just before clos- ing and passage of title, Perer learns about the shopping mall and the increased fair aurket value of his property. Peter refuses to deed the property to Carl. Carl claims that Alice, as Peter's agent, solicited a price above that agreed on when the agency was Crcated and that che contract is therefore bind- ing and enforceable. Discuss fully whether Peter is bound to this contract. (See Duties, Righta, and Remedies of Agents and Principals.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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