A principal instructs their agent to reject all offers below $800,000, but later becomes unavailable when a $795,000 offer is received. The agent knows the principal is under financial pressure. What authority does the agent have?
Correct Answer
C) No authority to accept it; the offer is below the price the vendor set
Agents can only act within their express authority as defined in the agency agreement. They cannot exceed their authority even if they believe it would benefit the principal, as this could create legal liability for unauthorized actions.
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