Cornett v. Nathan

242 N.W.2d 855 (1976)

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Nature of the Case

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Facts

P entered into a listing agreement with Ds, who desired to sell certain realty. Ds promised to pay a 7 percent commission and Ds listed their property for $349,700. P presented a potential buyer who offered the defendants $251,680 for the property. Ds accepted the offer and entered into a purchase agreement which, among other things, provided that in the event the buyer failed to complete the sale, the $5,000 in earnest money was to be considered liquidated damages. The purchase agreement provided that P would get a commission of $ 17,617.60. After the signing of the purchase agreement, the buyer refused to honor the purchase agreement because he was financially unable to do so. The property was not sold, but P still demanded his $17,617.60 commission. P sued D. Both parties moved for summary judgment. The court held that it was not the intent of Ds when they signed the listing agreement and the purchase agreement to be bound to pay a commission if the sale was never consummated. P appealed. P contends that he is entitled to his commission under the purchase agreement, at the moment that the seller and the buyer, procured by the broker, enter into a purchase agreement, regardless of whether the sale is ever consummated.