Agency

When a Tennessee listing agent accepts an offer on behalf of the seller without the seller's authorization, this act:

ACreates a binding contract if the price is within 10% of listing price
BIs unauthorized and not binding on the seller unless ratified✓ Correct
CIs always binding since the agent has implied authority
DIs permitted under Tennessee's emergency agency powers

Explanation

A listing agent typically has authority to market and present offers, but not to accept offers on the seller's behalf. Accepting without authorization is an unauthorized act that is not binding on the seller unless the seller ratifies it.

Related Tennessee Agency Questions

Practice More Tennessee Real Estate Questions

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

Take the Free Tennessee Quiz →