medium · National Real Estate Exam
An agent receives a 'stop work' order from the city regarding a construction project on the principal's land. The agent loses the letter and never tells the principal. The principal continues building and is hit with massive fines.
Who is legally responsible for the 'notice' of the order?
- The city is responsible for failing to ensure the principal personally signed for the letter.
- The notice is void because the 'imputed notice' doctrine only applies to real estate sales, not construction.
- The principal is responsible because the city fulfilled its duty of notice by delivering the order to the principal's authorized agent.
- The agent is the only person responsible because they were the one who lost the physical document.
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