Agency
A Rhode Island real estate agent makes an unauthorized promise to a buyer (e.g., that the seller will leave certain furniture). What is the legal result?
AThe promise is automatically binding on the seller
BThe promise is unauthorized and generally not binding on the seller; the agent may be personally liable✓ Correct
CThe promise is void and has no consequences
DThe buyer has no recourse
Explanation
An agent's unauthorized promise is outside their scope of authority and generally does not bind the principal (seller). However, the agent may be personally liable for any damages suffered by the buyer who relied on the unauthorized promise.
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