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19 Ohio C.C. Dec. 137

Ettinger v. Weatherhead

Cuyahoga Circuit Court

Decided November 12, 1906

Cuyahoga Circuit Court · decided 1906-11-12

<p>PRINCIPAL AND AGENT.</p> <p>Marvin, Winch and Henry, JJ.</p> <p>1. An Agent to 'Sell Land Cannot Contract to Sell Same.</p> <p>A real estate broker, authorized to sell, has no implied authority to execute a contract of sale, binding upon his principal.</p> <p>[For other cases in point, see 7 Cyc. Dig., “Principal and Agent,” §§ 181-232 — Ed.]</p> <p>2. Ratification of Unauthorized Acts of Agent.</p> <p>Where the owner of lands takes no steps to repudiate a contract to convey the same made by an unauthorized agent, but accepts the benefits of such, contract, he thereby ratifies the contract and is liable to the vendee for its breach.</p> <p>[For other cases in point, see 7 Cyc. Dig., “Principal and Agent,” §§ 463-484. — Ed.]</p> <p>[Proofs of this decision and syllabus were submitted to Judge Winch and! corrected. — Ed.]</p>

Relies on Duffy v. Hobson · McElwain v. Huston · Glentworth v. Luther

Decided 1906-11-12

WINCH, J.

¶1This was an action to recover damages for breach of a contract to convey lands.

¶2It appears that the defendant directed a real estate broker to sell said lands and the broker having found the plaintiff as a purchaser, entered into a written contract with the plaintiff for the conveyance of said lands to him, specifying the terms and agreeing that deed should be delivered within eight days. This contract the broker signed in behalf of the defendant and at once delivered a copy thereof to the defendant, retaining $50 which the purchaser paid when the contract was- executed.

¶3*138At tbe close of plaintiff’s evidence the trial judge directed a verdict for the defendant, holding that a real estate agent authorized to sell has no authority to execute a contract of sale binding upon his principal. That such is the law is abundantly established, both upon principle and authority. Coleman v. Garrigues, 18 Barb. 60; Glentworth v. Luther, 21 Barb. 145; Duffy v. Hobson, 40 Cal. 240 [6 Am. Rep. 617]; Carstens v. McReavy, 1 Wash. 359 [25 Pac. Rep. 471]; Brandrup v. Britten, 11 N. Dak. 376 [92 N. W. Rep. 453] ; Halsey v. Monteiro, 92 Va. 581 [24 S. E. Rep. 258].

¶4In this ease, however, the plaintiff introduced evidence tending to, prove that the defendant ratified the contract the broker had made for him. He took no prompt steps to repudiate the contract; he failed to disavow the agent’s authority and never directed the agent to pay back the purchaser’s $50 which had been paid down to bind the bargain, nor did he ever himself offer to refund said $50 to the purchaser.

¶5Whether, under all the circumstances, this unauthorized act of the agent was ratified by his principal, should have been submitted to the jury.

¶6It was also error to exclude from evidence the written contract signed by the agent.

¶7For the two errors mentioned, the judgment is reversed and the cause remanded for a new trial.

Marvin and Henry, JJ., concur.
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