Becky Bates, a real estate broker, entered into a listing contract with Wally Cleaver for the sale of Wally's home in Fort Worth, Texas. The listing contract is for a term of 90 days. Wally tells Becky that he and his wife are getting divorced and he needs to sell the house quickly. The listing price of the home was $600,000. Wally tells Becky to bring any and all offers on. Becky shows Ricky Nelson the house. She can tell that Ricky is really interested in the property, so she tells him that Wally is getting divorced. Becky advises Ricky to make an offer on the house. Ricky offers Wally $575,000 for the home, which Wally reluctantly accepts.Wally later finds out that Becky told Ricky about his pending divorce. Wally sued Becky for breach of fiduciary duty. Becky has not breached her fiduciary duty to Wally.

4. T F

Assume the facts of the prior problem. Becky is considered a special agent in this transaction.

5. T F

Assume the facts of the prior problem. Immediately after signing the listing contract with Becky, Wally learned that he was being transferred to Australia for work and he gives a power of attorney to his brother, Theodore. The power of attorney was signed by Wally, but did not specifically state that Theodore could sign contracts for Wally. Theodore signs the contract of sale for Wally. When Wally gets back from Australia he learns of the $575,000 contract price and declares that the contract is not binding. Wally is correct.