Perry employed Alice to sell a parcel of real estate at a fixed price without knowledge that David had previously employed Alice to purchase the same property for him
Perry employed Alice to sell a parcel of real estate at a fixed price without knowledge that David had previously employed Alice to purchase the same property for him. Perry gave Alice no discretion as to price or terms, and Alice entered into a contract of sale with David upon the exact terms authorized by Perry. After accepting a partial payment, Perry discovered that Alice was employed by David and brought an action to rescind. David resisted on the ground that Perry had suffered no damage for the reason that Alice had been given no discretion and the sale was made upon the exact basis authorized by Perry. Discuss whether Perry will prevail.
Individual A has breached the contract of the agency since Individual A has acted as agent for both Individual P andIndividual D for the same contract of the sale of a property. Individual A acted as the buyer and the seller of the same property, which is against the interest of the principals to the contract. So, Individual A is neither get the commission from Individual P nor from Individual D.Individual P is going tobe successful in cancelling the contract, even through Individual P has not suffered any losses.
The court's decision in favor of Individual P since Individual P was unaware of the fact that Individual A was also acting as the agent of Individual D for the same contract, for which Individual P had employed Individual A as an agent.