Arthur Agent was hired to manage the Main Street Apartments for Pauline Principal; nothing was said as to maintenance expenses. Tenant informed Agent of a plumbing problem, and Agent telephoned Plumber to fix it. Plumber sent the bill to Principal, who denied Agent's authority to hire a plumber ("My cousin is a plumber, and that's who I use," she said). Principle is not liable.

Question

Quizplus · Accepted Answer

Although nothing was initially said about maintenance expenses, it can be assumed that they are the responsibility of the property owner (Principal). Agent, as the manager, had implied authority to address maintenance issues on behalf of the owner. However, since Principal explicitly denied Agent's authority to hire a plumber, she cannot be held liable for the bill.

Arthur Agent Was Hired to Manage the Main Street Apartments