Brenda Smith was injured by a falling ceiling in a building owned by the Cynfax

Question

Brenda Smith was injured by a falling ceiling in a building owned by the Cynfax Corporation. She retained Floyd Goldsman as her attorney. Goldsman sued Cynfax on her behalf. On February 4, Cynfax’s insurer, the Cumberland Mutual Fire Insurance Company, made Smith a $7,000 settlement offer through Goldsman. Goldsman immediately tried to inform Smith of the offer, but learned that she had died two days earlier on February 2. Later, Goldsman accepted Cumberland’s offer to Smith.

Did Goldsman have authority to do so?

Explanation / Answer

As per the stated case, Mr. G did not have the authority to accept C's offer. As per the U.S laws, G's agency immediately ceased when his client died. Also, a genral principle of agency states that the death of the principal terminates the authority of the agent.

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