Is Harris obligated to convey Red Bank to Sims? Explain.

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Is Harris obligated to convey Red Bank to Sims? Explain.

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Harris, owner of certain land known as Red Bank, mailed a letter to Byron, a real estate broker in City X, stating, “I have been thinking of selling Red Bank. I have never met you, but a friend has advised me that you are an industrious and honest real estate broker. I therefore employ you to find a purchaser for Red Bank at a price of $350,000.” Ten days after receiving the letter, Byron mailed the following reply to Harris:

Acting pursuant to your recent letter requesting me to find a purchaser for Red Bank, this is to advise that I have sold the property to Sims for $350,000. I enclose your copy of the contract of sale signed by Sims. Your name was signed to the contract by me as your agent.

Is Harris obligated to convey Red Bank to Sims? Explain.

Explanation & AnswerSolution by a verified expert

Explanation

Individual H wrote a letter to Individual B, who is a real estate broker, mentioning the need to find a suitable purchaser for the land of Individual H. Individual B had the right to act on behalf of Individual H in finding a buyer. However, Individual B sold the land to Individual S, which was out of the scope of authority. It is Individual S's duty to prove the authority of Individual B to sell the land and to get the authority of the land. On the other hand, if Individual H gave the authority to Individual B to sell the land, then Individual H would have been liable to hand over the land to Individual S.

Verified Answer

Individual H is not obligated to hand over the land to Individual S as Individual B had the right to find a suitable buyer for the land. Nowhere in the letter sent to Individual B by Individual H had it been mentioned that Individual B is authorized to sell the land. If the authority to sell the land had been given to Individual B by Individual H, only then Individual B is liable to give the land to Individual S.

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