Next Generation Bar Exam Quiz
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BUSINESS ASSOCIATIONS AND RELATIONSHIPS
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Priya, an elderly homeowner, hired her nephew Sam, a real estate agent, to help her sell her house. Without telling Priya, Sam formed an LLC and bought her house at fair market value. Six months later, Priya learned that Sam had been the buyer. She wrote to him: 'You are my nephew; I am glad you bought the house rather than a stranger; I confirm the sale.' A year later, after the market climbed, Priya sued to rescind, claiming Sam breached a fiduciary duty.
Which statement best describes Priya's prospects?
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