al 1 1 pts Sarah hires John, a real estate agent, to sell her property. Sarah tells John that she wants at least $500,000 for the property and gives him the authority to negotiate and accept offers on her behalf. John finds a buyer who offers $450,000, but John tells the buyer that Sarah will not accept less than $475,000. The buyer agrees to the price and signs a contract, which John signs on behalf of Sarah. John has breached his duty of loyalty to Sarah by accepting an offer that is less than her instructed minimum price. John has acted within his authority by negotiating and accepting an offer on behalf of Sarah. Sarah cannot hold John liable for breach of duty as she gave him the authority to negotiate and accept offers on her behalf. The buyer can cancel the contract because John did not have actual authority to negotiate and sign the contract on Sarah's behalf.