Property Management

A Louisiana commercial property manager who executes a lease on behalf of an owner without proper authority may have created a(n):

AValid lease binding on the owner under apparent authority
BUnauthorized contract that may be void or voidable at the owner's election
CEnforceable lease under the doctrine of ratification only if the owner later learns of and accepts the lease terms
DBoth B and C — the contract is void unless ratified by the owner✓ Correct

Explanation

An agent who acts outside the scope of their authority creates an unauthorized transaction. Under Louisiana agency law, such a contract is void or voidable at the principal's election, but the owner may ratify (affirm) the unauthorized act after the fact, making it binding. Both B and C accurately describe the legal consequences.

Related Louisiana Property Management Questions

Practice More Louisiana Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Louisiana Quiz →