Property Management

A NH property manager who signs a lease on behalf of an owner without authorization is:

ABinding the owner only if the lease is profitable
BPotentially creating an unauthorized contract that the owner may ratify or disavow✓ Correct
CAlways binding on the owner since the manager signed it
DOnly liable to the tenant for the unauthorized signature

Explanation

An agent who acts beyond their authorized scope creates an unauthorized or voidable contract. The principal (owner) may ratify the act (making it binding) or disavow it. The agent may be personally liable for exceeding authority.

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