X CoOwns Land All Over Downtown Toronto

question 58

Multiple Choice

X Co.owns land all over downtown Toronto.From time to time,X Co.has used John Jones as its agent to sell land that it owns.X Co.hires John and tells him it wants to sell a downtown property located on Front Street.It instructs John to list the property for $1 million,but that it will take $900 000.00.John has a friend,Mary,who is interested in buying the Front Street property,but rather than listing it at $1 million,he simply tells Mary "For $900 000.00 it's yours," and she agrees.John,having effected the sale,now wants to be paid his commission by X Co.In this situation

• A)John has apparent or ostensible authority to sell the land.
• B)John has breached his fiduciary duty owed to X Co.
• C)X Co.can refuse to pay John his commission.
• D)there is an agreement of purchase and sale between X Co.and Mary for the Front Street property.
• E)all of the above

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