Can a contract be voided if personal representative ‘self’deals’?

UPDATED: Oct 2, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 2, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a contract be voided if personal representative ‘self’deals’?

My brother was named personal
representative for my mothers
estate. The court ordered the
house to be sold to the first person
who had the full amount. My
brother ‘sold’ the house to the first
person who flashed 4,000 in front
of him claimed it was down
payment and accepted rent to own
monthly payments over a 4 year
period! He spent the 4,000
gambling which he admitted in
court to the judge . He also signed
the contract just using his name,
not his name, personal
representative for the estate of, my
mothers name.

Asked on October 2, 2019 under Estate Planning, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, self dealing does not invalidate the agreement, because the contract can only be voided or terminated against the wishes of other side (the "buyer") if the other side committed fraud or breaches a material (important) term. You cannot use your own  side's actions (i.e. the personal representative's) to void or terminate a contract that the other side wants to continue. You would need the buyer to engage in wrongdoing related to the contract to void or terminate it. Also, the personal representative's fiduciary duty (i.e. to not "self deal") has nothing to do with the buyer, and so again does not affect a contract with the buyer. What it may do is let you sue your brother as PR to either replace his as PR and/or force him to pay money to the estate which he has cost it by his self dealing or carelessness: the PR's fiduciary duty is to the estate, so a violation of it may give the estate a cause of action or claim against him.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption