A South Carolina buyer and seller enter into a written purchase agreement for a home in Anderson. The agreement is signed by the buyer but is signed by the seller's 16-year-old child, who claims to have authority to sign on the seller's behalf but has no written power of attorney. The seller later refuses to close. Which statement best describes the enforceability of this contract against the seller?
Correct Answer
D) The contract is unenforceable against the seller because the child lacked actual authority to bind the seller
Under South Carolina law, for a contract to bind a principal, the agent signing on the principal's behalf must have actual or legally recognized authority. A 16-year-old child without a written power of attorney has neither actual authority (no formal grant of authority) nor legally sufficient authority to execute a real estate contract on behalf of a parent. Moreover, South Carolina's Statute of Frauds requires that a real estate contract be signed by the party to be charged (the seller) or their duly authorized agent. Without proper authorization, the seller's signature requirement is not met, and the contract is unenforceable against the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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