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Four People,who Are Not Partners,buy and Sell a Large Number

Question 12

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) The listing agreement can be enforced against the other owners because Marius did have actual authority to act on their behalf.
B) The listing agreement is enforceable on the basis that it was entered into in the normal course of business.
C) Even if the agreement may not be enforced,the real estate agent may have a claim against Marius for defamation.
D) The listing agreement can be enforced against the other owners because the real estate agent can rely on the statements of Marius to give him apparent authority to enter the contract on behalf of the others.
E) The listing agreement is not enforceable as Marius did not have actual or apparent authority.The realtor would have inquired as to who owned the real estate and in what capacity and would be alerted by reasonably expected inquiry to the lack of authority.

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