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Four People, Who Are Not Partners, Buy and Sell a Large

Question 32

Multiple Choice

Four people, who are not partners, buy and sell a large number of apartment buildings. One of them, Marius, enters into a listing agreement with a real estate agent to sell one building. Marius says that he has authority to bind all four owners to the listing agreement. In fact, none of the others have authorized Marius to enter into the listing agreement, and they have no intention of selling their interests in the building. Which of the following is TRUE?


A) Even if the agreement may not be enforced, the real estate agent may have a claim against Marius for breach of warranty of authority.
B) If the group of four people were partners, the listing agreement may be enforceable on the basis that it was entered into by one partner in the normal course of the partnership business.
C) The listing agreement cannot be enforced against the other owners because Marius did not have actual or apparent authority to act on their behalf.
D) The listing agreement cannot be enforced against the other owners because the real estate agent cannot rely on the statements of Marius to give him apparent authority to enter the contract on behalf of the others.
E) All of the above.

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