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A directs B to sell A's estate. Looking over the estate before selling it, B finds a mine on it which…

Section 215 allows an agent to deal on his own account only after obtaining the principal's consent and "acquainting him with all material circumstances" known to the agent.…

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A directs B to sell A's estate. Looking over the estate before selling it, B finds a mine on it which is unknown to A. B tells A he wishes to buy the estate himself, but conceals the discovery of the mine, and A allows B to buy. A later learns that B knew of the mine. What can A do?

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Correct answer A

Section 215 allows an agent to deal on his own account only after obtaining the principal's consent and "acquainting him with all material circumstances" known to the agent. Illustration (b) to section 215 holds that A may either repudiate or adopt the sale at his option. A's consent, given in ignorance of the mine, does not protect B.

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