[Lakeside Property] Kumar Agreed to Act as the Agent of Melanie

question 60

Multiple Choice

[Lakeside Property] Kumar agreed to act as the agent of Melanie in finding a piece of lakeside property for her at a good price, and also in obtaining a loan for her with which to purchase the property. She agreed to pay him $500 for doing so. To assist Kumar in his duties, Melanie disclosed to him confidential information about her finances and debts. Kumar decided that he needed help and paid Rick $300 to look for property for Melanie. Rick told Kumar about a great deal on a piece of lakeside property that Phil had for sale. In fact, the deal was so good that Kumar purchased the property for himself. When Melanie found out about the property Kumar bought for himself, she complained to Kumar. He defended himself on the basis that he was not actually working for Melanie when he found out about the deal. At the time, he was playing golf with Phil. He also told Melanie that he had hired Rick for $300 to assist him and that he could not be held liable because he had turned the job over to Rick. He asked Melanie for reimbursement of the amount he paid Rick. Melanie fired Kumar threatening to sue him. Kumar told Melanie that he would counterclaim for the $300 owed to Rick. After he was fired, Kumar disclosed to a number of parties information regarding Melanie's spending habits which he thought were excessive.
-Which of the following is the most likely result if Kumar sues Melanie for the $300 paid to Rick?

• A) Kumar will lose.
• B) Kumar will win because an agent has an implied right to obtain help.
• C) Kumar will win only if he can establish by a preponderance of the evidence that he acted reasonably.
• D) Kumar will win unless Melanie can establish beyond a reasonable doubt that he acted unreasonably.
• E) Kumar will lose only if Melanie can establish that Rick is incompetent to deal in real estate.

Analyze contract case scenarios to determine legal outcomes and the existence of contractual obligations.

Understand the concept of executory contracts and their status within contract law.

Understand the concepts and defenses related to tort law.

Differentiate between criminal law and tort law.

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