Burke v. Bours

Citations

• 98 Cal. 171
• 32 P. 980
• 1893 Cal. LEXIS 881

Syllabus

<p>Agency— Purchase by Agent from Prinoepai,.—An agent authorized to sell the property of the principal may purchase the property from the principal if he deals openly with him, upon full disclosure of all the facts and acts in good faith, taking no advantage of the situation, and the transaction is fair and just and the consideration full and adequate, and the sale is made to the agent with the full knowledge and consent of the principal.</p> <p>Id.—Right of Principal to Avoid Sale to Agent.—When the agent deals with the principal at arm’s-length, and after a full disclosure of all that he lmows concerning the property which he is authorized to sell, or when the principal ratifies the purchase by the agent from himself, with full knowledge of aU the circumstances connected with the transaction, he can thereafter avoid the sale only upon the same grounds as if the purchase had been made by a stranger.</p> <p>Id.—Sale by Agents to Broker with Consent of Principal—Ratification. —Where a broker, employed by agents authorized to sell the property .of the principal, had negotiated a sale for the full value of the property which the purchaser refused to consummate, both the agents and'principal being fully notified of all the information obtained by the broker respecting the negotiation, or respecting the value or condition of the property, and upon failure of the negotiation, the broker inserted his own name in the deed, and notified the agents thereof and proposed to them to purchase the property at the same price which he had negotiated, if it was agreeable to the principal, and if not that he would return the deed, and was notified by them of the principal’s consent that • he should become the purchaser at the price specified, and that all the principal wanted was to receive the money, which was thereupon paid to the agents, after which the broker took possession of the property, the sale to the broker must be regarded as made upon a direct dealing with the principal