Bearden decided to sell some rental property she owned. She listed the property with real estate agent Gritton, who worked for Wardley Corporation, a real estate brokerage firm.
Soon after listing the property, Gritton told Bearden that he wanted to buy the property for $89,000. She agreed and allowed Gritton to take over the property.
The contract called for him to pay Bearden $400 a month followed by a one- time balloon payment at the end of five years. Bearden would keep title to the property until the balloon payment was made.

1. The appeals court affirmed that the principal was liable for damages incurred by fraud of one of its agents. Since there was no evidence that Wardley participated in Gritton's fraud, why should it be liable?
2. Suppose Gritton had told Wardley he wanted to buy the property he had listed. What should Wardley have done?