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Spencer Realty & Construction Co. had a lead on a prime piece of real estate. Although Spencer did not have a listing agreement with the
- Spencer Realty & Construction Co. had a lead on a "prime" piece of real estate. Although Spencer did not have a listing agreement with the seller of the property, she contacted Do & Alvarez Properties ("DAP"). Spencer knew that DAP was looking for a location for a commercial development. Spencer told DAP only that she knew of the"finest, most outstanding, viable location in the county and it just came on the market". Spencer said she would reveal the location of the property and the owner's name if DAP would sign an agreement which would require DAP to pay a 10% commission to Spencer if a sale of the property resulted. DAP agreed and the agreement was signed by both parties.
Four months later, DAP bought the property after negotiating the deal himself. DAP claims it does not owe a commission to Spencer because there was insufficient consideration to support the payment of so large a commission. DAP claims that all Spencer did in the entire transaction was to reveal the location of the property and the owner's name.
Was there sufficient consideration to make this promise enforceable?
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