George Richert agreed to retain Crye-Leike Realtors as his sole and exclusive real estate agent to find
Question:
George Richert agreed to retain Crye-Leike Realtors as his sole and exclusive real estate agent to find a building for Richert’s business. The agency contract was signed by Richert and by Colman Borosky for Crye-Leike. All parties understood that Richert would soon form a corporation that would be the actual party to lease the building found by Crye-Leike. A month later, Richert formed WDM Inc. Richert was president and CEO. WDM never formally adopted the agency contract with Crye-Leike. However, Crye-Leike contacted various landlords for WDM, showed several properties to WDM, and prepared an offer to lease space on behalf of WDM. All these efforts were done with Richert’s full knowledge. When WDM hired another real estate agent, Crye-Leike sued for breach of the exclusive agency contract. WDM claimed that it was not a party to the contract between Richert and Crye-Leike. Was WDM correct?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-1259917110
17th edition
Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory