A Nevada seller accepts a buyer's offer and both parties sign a purchase agreement. Two days later, the seller receives a higher offer and wants to back out. The seller argues the original contract is not binding because the buyer's agent, not the buyer personally, signed the acceptance confirmation. Under Nevada law, which is the most accurate analysis?
Correct Answer
C) The contract may be enforceable if the buyer's agent had written authority to sign on the buyer's behalf, such as through a written agency agreement
Under Nevada agency law and NRS Chapter 645, a licensed real estate agent may sign documents on behalf of a principal if the agent has been granted the authority to do so in writing. A written buyer representation agreement or other written authorization can grant an agent the authority to sign on the buyer's behalf. If such written authority exists, the contract would be enforceable. The key issue is whether written authorization existed, not whether an agent can ever sign for a principal.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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