Question
4. Cleon listed his business property with Chumney, a real estate broker. The listing agreement included the following provision: During the life of this contract
4. Cleon listed his business property with Chumney, a real estate broker. The listing agreement included the following provision: "During the life of this contract if you find a buyer who is ready, able and willing to buy, lease or exchange said property,... or if I agree to an exchange of said property, or any part thereof, or if said property or any part thereof is sold, leased or exchanged during said term by myself or any other person, firm, or corporation, I agree to pay you the 6 percent commission." Assume that the agreement covered the period from June 8, 2004, to December 8, 2004, and that on August 2, 2004, Cleon sold the property to Super Tire Mart (which had in no way dealt with Chumney) for $120,000. Before the sale, Chumney had shown the property to several prospective buyers, had placed a "For Sale" sign on the property, and had advertised in the newspaper. Chumney's expenses totaled $73. Is Cleon liable to Chumney for damages? Why or why not? If Cleon is liable, what is the amount of damages?
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