Agency by estoppel means: a. conduct on the part of the agent ...

[sjones]

Agency by estoppel means:
 a. conduct on the part of the agent that implies an agency relationship must be stopped as soon as the principal implies disagreement
  b. the principal has ratified actions of the agent in the past, creating the impression of a formal agency
  c. the agent creates an appearance of authority in the principal which leads a third party to reasonably conclude that the agent has the authority to perform certain acts
  d. conduct by the agent through word or actions is not sufficient to bind the principal to contracts the agent creates
  e. none of the other choices

Question 2

Bilateral versus Unilateral Contracts. Nichols is the principal owner of Samuel Nichols, Inc, a real estate firm. Nichols signed an exclusive brokerage agreement with Molway to find a purchaser for Molway's property within ninety days. This type of agreement entitles the broker to a commission if the property is sold to any purchaser to whom it is shown during the ninety-day period. Molway tried to cancel the brokerage agreement before the ninety-day term had expired. Nichols had already advertised the property, put up a for sale sign, and shown the property to prospective buyers. Molway claimed that the brokerage contract was unilateral and that she could cancel at any time before Nichols found a buyer. Nichols claimed that the contract was bilateral and that Molway's cancellation breached the contract. Discuss who should prevail at trial.

[asware1]

Answer to Question 1

e

Answer to Question 2

Bilateral versus unilateral contracts
The court held that the contract was bilateral in nature. Molway claimed otherwise because that would allow her to revoke anytime before Nichols produced a buyer. A unilateral contract is a promise for an act. Were that the case here, Molway's promise to pay was only good until Molway revoked or Nichols performed the act required by the agreementthat is, produced a buyer for Molway's property. A bilateral contract is a promise for a promise. The court held that Nichols promised to exert an effort and to take marketing steps to attract a buyer. This promise supported Molway's promise to give Nichols the exclusive engagement to sell the property for ninety days. Thus, Molway could not revoke the bilateral contract with Nichols.