This section contains the nature of the case and procedural background.

Michals (D) and Nebraska Real Estate Corp. entered into a multi-listing contract. Dworak (P) contacted his clients, Johanns and Swanson and then submitted an offer of $256,000 which was accepted by D on the same day. The offer was accompanied by a $500 deposit. The appraiser for the mortgage lender then discovered the hidden secrets of D in that the tenants who were currently renting were mostly planning to move out and that the rents listed on the real estate sheet were not those currently in effect but those planned after the increase. Based on this material misrepresentation, D agreed to release the buyers from the purchase contract. The release was signed, and the $500 was returned. P learned of the release and his demand for commission was refused. P sued D. The trial court found that P was entitled to $250. P appealed.

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