Lakeside Property

question 114

Multiple Choice

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

• A)Ronnie will lose.
• B)Ronnie will win,but only if he can establish that he had express permission from Sue to assign the duties.
• C)Ronnie will win,but only if he can establish that he had either express or implied permission from Sue to assign the duties.
• D)Ronnie will win,but only if he can establish that he had express,implied,or assumed permission from Sue to assign the duties.
• E)Ronnie will lose,but only if Sue can establish that Rick is incompetent to deal in real estate.

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Definitions:

Journal Entry

A record in the accounting journal that represents a business transaction and reflects changes in accounts.

Claims Against Estate

Legal claims or debts against a deceased person's estate, which must be settled before assets can be distributed to heirs.

Funeral Expense

Costs associated with burial or cremation and associated services, often considered during estate planning.

Journal Entry

A record in the accounting books that denotes a transaction or financial event.