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Real estate partnership with her cousin

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Reference no: EM133293066

Peter hires Alice as an agent to sell as pieces of property he owns. The price is to be at least $30,000. Alice discovered that the fair market value of Peters's property is actually $45,000 at least and could be higher because a shopping mall is going to built nearby. Alice forms a rental estate partnership with her cousin Carl. Then she prepares for Peters signature a contract for the sale of the property to Carl for $32,0000.Peter sign the contract. Just before closing and passage the tile,Peter learns about the shopping mall and the increase in the market value of his property. Peter refused to deed the property to Carl. Carl claims that as Peters's agent, Alice solicited the prices above to agree on when the agency was treated and that the contract is, therefore, binding and enforceable.

1. Do you think Peter is bound to this contract?

2. Would your answer be different if Alice had not entered into a real estate partnership with her cousin? Explain why or why not.

Reference no: EM133293066

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