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question

The owner of a large family estate decided to sell the property. The owner entered into a valid written brokerage agreement with a real estate broker. According to terms of the agreement, the broker promised to undertake best efforts to sell the estate for a purchase price of not less than 1,250,000.Thecontractalsoprovidedthatthebrokerwastobepaidacommissionof5percentonthegrosssalepricefollowingtheconsummationofthesaleandtransferoftitle.Thebrokerageagreementwaseffectiveforaperiodoftwomonths.Onemonthlater,thebrokernotifiedtheownerthatshehadfoundabuyerwhowantedtopurchasethepropertyfor1,250,000. The contract also provided that the broker was to be paid a commission of 5 percent on the gross sale price following the consummation of the sale and transfer of title. The brokerage agreement was effective for a period of two months. One month later, the broker notified the owner that she had found a buyer who wanted to purchase the property for 1,500,000. That same day, the broker handed the owner a real estate sales contract, signed by the buyer, in which the buyer agreed to pay $1,500,000 for the purchase of the estate. The owner investigated the buyer and discovered he had sufficient funds to purchase the estate. However, the owner changed his mind and decided not to sell the property. He told the broker that he would not sign the agreement. In addition, the owner told the broker that he was canceling their brokerage agreement because he was withdrawing the estate from the market. The owner also refused to pay the broker any commission. If the broker now sues the owner for breach of contract, which of the following, if anything, is the broker's proper measure of recovery?
Plain-text mathematical notation (without MathML)
The owner of a large family estate decided to sell the property. The owner entered into a valid written brokerage agreement with a real estate broker. According to terms of the agreement, the broker promised to undertake best efforts to sell the estate for a purchase price of not less than 1,250,000.Thecontractalsoprovidedthatthebrokerwastobepaidacommissionof5percentonthegrosssalepricefollowingtheconsummationofthesaleandtransferoftitle.Thebrokerageagreementwaseffectiveforaperiodoftwomonths.Onemonthlater,thebrokernotifiedtheownerthatshehadfoundabuyerwhowantedtopurchasethepropertyfor1,500,000. That same day, the broker handed the owner a real estate sales contract, signed by the buyer, in which the buyer agreed to pay $1,500,000 for the purchase of the estate. The owner investigated the buyer and discovered he had sufficient funds to purchase the estate. However, the owner changed his mind and decided not to sell the property. He told the broker that he would not sign the agreement. In addition, the owner told the broker that he was canceling their brokerage agreement because he was withdrawing the estate from the market. The owner also refused to pay the broker any commission. If the broker now sues the owner for breach of contract, which of the following, if anything, is the broker's proper measure of recovery?
Original LaTeX notation
The owner of a large family estate decided to sell the property. The owner entered into a valid written brokerage agreement with a real estate broker. According to terms of the agreement, the broker promised to undertake best efforts to sell the estate for a purchase price of not less than $1,250,000. The contract also provided that the broker was to be paid a commission of 5 percent on the gross sale price following the consummation of the sale and transfer of title. The brokerage agreement was effective for a period of two months. One month later, the broker notified the owner that she had found a buyer who wanted to purchase the property for $1,500,000. That same day, the broker handed the owner a real estate sales contract, signed by the buyer, in which the buyer agreed to pay $1,500,000 for the purchase of the estate. The owner investigated the buyer and discovered he had sufficient funds to purchase the estate. However, the owner changed his mind and decided not to sell the property. He told the broker that he would not sign the agreement. In addition, the owner told the broker that he was canceling their brokerage agreement because he was withdrawing the estate from the market. The owner also refused to pay the broker any commission. If the broker now sues the owner for breach of contract, which of the following, if anything, is the broker's proper measure of recovery?

choices

  1. Nothing, because a condition precedent, namely the consummation of the sale and transfer of title, has failed to occur.
  2. Quantum meruit for the reasonable value for services rendered in obtaining a buyer for the property.
  3. $75,000, or the commission equivalent of 5 percent on the sale of the property for$1,500,000, since all conditions precedent to the owner's duty to pay the commission were fulfilled when the broker produced a buyer who was ready, willing and able to perform.
  4. $75,000, or the commission equivalent of 5 percent on the sale of the property for$1,500,000, since the consummation condition to the owner's duty to pay the commission was excused by the owner's refusal without cause to accept the buyer's offer and perform the land sale contract.

subject

professional_law

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task_id
d08ed5d3-abd9-5537-b213-e360a29a8afe
task_key
all--test--d08ed5d3-abd9-5537-b213-e360a29a8afe
task_revision_id
1
config / split
all / test

Official source

initial import