Full question:
I am the successor of my uncle’s property in New Jersey. His agent, who has the power of attorney, entered into a contract to buy a property on his behalf. The agent does not know that fact that my uncle has died during a long treatment at a hospital. Is that contract binding on me?
- Category: Power of Attorney
- Date:
- State: New Jersey
Answer:
In New Jersey, if an agent acts in good faith under a power of attorney without knowing that the principal has died, their actions can still bind the principal's successors. This is stated in N.J. Stat. § 46:2B-8.5, which specifies:
- The death of a principal does not revoke the agency for the agent who acts without actual knowledge of the death.
- Actions taken in good faith under the power of attorney will bind the principal's successors.
- If the agent provides an affidavit stating they acted without knowledge of the principal's death, the act is presumed valid unless proven otherwise.
In your case, since your uncle's agent was unaware of his death and acted in good faith, the contract may be binding on you.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.