Newberry v. Barth, Inc.
Supreme Court of Iowa
252 N.W.2d 711 (1977)
Florence Barth and her husband formed Barth, Inc. (defendant) to buy an apartment complex using an FHA-backed loan that barred any sale without FHA approval. Florence served as a corporate officer and apartment manager. Without disclosing Barth, Inc.'s ownership or the FHA approval requirement, Florence signed a contract to sell the complex to Donald Newberry (plaintiff). Newberry sued for specific performance, arguing Florence acted as Barth, Inc.'s agent with authority to sell. The trial court ruled for Newberry, and Barth, Inc. appealed.
Whether a corporate officer has authority to sell the corporation's real estate solely because of the officer's position, without additional indicia of authority.