Rosalie owned a commercial warehouse in Markham, Ontario. As she was nearing retirement, Rosalie listed the warehouse for sale with Michael, a real estate agent. Real estate agents in Ontario are a self-regulated profession.

While Rosalie was on an extended visit to New Zealand looking for a retirement property, she authorized Michael to sell the building on her behalf provided the offer was for at least $750,000. In her absence, Michael showed the property to Malcolm during the term of the Listing Agreement, but Malcolm did not make an offer.

Two weeks after the Listing Agreement between Rosalie and Michael expired, Malcolm made an offer to purchase the property for $750,000.Michael accepted the offer on behalf of Rosalie.

a.Discuss the nature of an agency relationship, the ways in which an agency relationship may be created and on what basis, if any, there a contract between Rosalie and Malcolm.

Suppose, instead, that the agreement between Michael and Malcolm was entered into during the term of the Listing Agreement. At first, Rosalie is happy that Michael has found a buyer, even though she thought the warehouse might be worth a little more than $750,000. But, a week after the deal is entered into, Rosalie finds out that Malcolm is Michael's business partner and they plan on operating the warehouse together.

b. Discuss the duties of an agent and any grounds Rosalie may have to object to this deal.

c. Discuss the nature of a self-regulated profession and the type of action (other than a court action) that Rosalie may take against Michael as a regulated professional.