Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The agreement provided that the Warren's were obligated to pay a commission of 5% of the sales price if they sell the property to any

The agreement provided that the Warren's were obligated to pay a commission of 5% of the sales price if they sell the property to any person during the term of the exclusive listing agreement. The term of the agreement was six months long running from January 1 of the year through June 30th. Detlefsen marketed the property and secured several offers with the highest offer being $700,000 from Ivy Jones which the Warren's agreed to on May 30th of that year. This sales contract had a provision that in the event of default by the Warren's Ivy Jones only recourse would be a refund of her $10,000 deposit. Subsequently, a friend of the Warren's, Zaine Johnson a person unknown to Detlefsen, found out the Warrens were selling the property and offered to buy it for $800,000. The Warren's thus, subsequently cancelled the sales contract to Ivy Jones and returned her $10,000. They then waited until July 1, after the term of their exclusive contract with Detlefsen had lapsed and signed a written agreement to see the property to Zaine Johnson. Does the Warren family owe any brokers fee to Detlefsen for the sale of the property? Why or why not? If a fee is owed what should it be based on the $700,000 sales price or the $800,000 sales price? Discuss.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Tort Law And Alternatives Cases And Materials

Authors: Marc Franklin, Robert Rabin, Michael Green, Mark Geistfeld, Nora Engstrom

11th Edition

164708489X, 978-1647084899

More Books

Students also viewed these Law questions

Question

What is the difference between a Eurocurrency loan and a Eurobond?

Answered: 1 week ago