Sunset Properties,Inc.hires William to manage its 48-unit apartment complex.Nothing is said as to expenses.William purchases fuel to heat the apartments and arranges for a repairman to do ordinary maintenance.William will be personally liable for these expenses,because he has no authority to incur them.

Question

Quizplus · Accepted Answer

If nothing is said about expenses, it is generally assumed that the manager has authority to incur reasonable and necessary expenses for the operation of the property. Therefore, William would not be personally liable for these expenses unless they were outside the scope of what is reasonable and necessary.