medium · National Real Estate Exam

A buyer deals with an individual who claims to be the exclusive agent for a new subdivision. The individual has an office on-site and uses the developer's official forms, but in reality, they were never hired. The developer is aware of the individual's presence and use of the office but does nothing. If the buyer sues to enforce a contract signed with this individual, the developer is likely liable under:

  1. Implicit authority
  2. Ostensible authority
  3. The doctrine of Caveat Emptor
  4. Actual authority

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