Question: Owner listed his house with Penelope, a real estate broker, granting Penelope an exclusive right to sell Owner's house. Penelope entered into negotiations with Buyer,

Owner listed his house with Penelope, a real estate broker, granting Penelope an exclusive right to sell Owner's house. Penelope entered into negotiations with Buyer, who seemed interested in purchasing the property. Buyer found the price agreeable, but he insisted on including in the sales contract a clause giving him the right to cancel the contract if he could not get a loan to finance his purchase. At the closing, Buyer exercised his right to cancel, giving as his reason inability to procure a loan. Penelope turned to Owner and claimed that she was entitled to her commission even though the sale did not go through. Must Owner pay Penelope a commission?

Step by Step Solution

★★★★★

3.44 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Owner does not have to pay Penelope a commission because she did not sell the hous... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

244-L-B-L-L-E (2038).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

To sell an average house, a real estate broker spends $1200 for advertisement expenses. If the house sells in three months, the broker makes $8,000. Otherwise, the broker loses the listing. If there...

A woman wrote to Dear Abby and claimed that she gave birth 308 days after a visit from her husband, who was in the Navy. Lengths of pregnancies have a mean of 268 days and a standard deviation of 15...

You've been a real estate broker for almost 15 years, and for the past three years, you have generated more sales and commissions than anyone at your firm. As you sit in a meeting with your firm's...

Owner listed his house with Penelope a real estate broker granting her an exclusive right to sell Owner's house. Penelope entered into negotiations with Buyer who seemed interested in purchasing the...

Question 1 1 pts A broker brings his seller an offer from a potential buyer. If the seller asks about the buyer's race, the broker: Group of answer choices must disclose this information to the...

Chapter 10 from Business Law and the Legal Environment was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 license without attribution as requested...

Under the Comprehensive Environmental Response, Compensation and Liability Act, liability for the release of a hazardous substance on an owner's property is placed on the Group of answer choices the...

Hello, This is the Fina 210 Course about Real estate. Could you help me to solve this problem and show me a solution? because i want to know how to solve this type of question in exam. Thank you! ps:...

Administrative Law 5 A dministrative law governs and defines the powers of government agencies. A number of political and technological factors have led to an explosion in the growth of government...

BUSINESS LAW WRITTEN MEMORANDUM PROJECT WRITTEN MEMORANDUM You are a law clerk working for a lawyer in New York who wants an analysis performed on the case above (do not take sides - analyze it in...

What are the stages of the creative process? Do you agree with the notion that advertising creativity can or should follow a definitive process?

How are outsourcing and vertical integration related? Can a single firm successfully do both?

ans 3. ta A club has 160 members, some of whom play tennis (T) or cricket (C) or both. 9 / play tennis. 86 play cricket and 10 play neither, x play both tennis and cricket. (1) Draw a Venn diagram to...

What is the relationship among the returns for foreign and domestic investment instruments? What is the implication of these relationships for portfolio diversification?

The attention of a school bus driver was diverted momentarily from the road when a bee flew in the window of the bus and stung him on the neck. While the driver ducked his head and tried with his...

A group of eBay customers successfully bid for twelve autographed baseballs at an eBay auction. When the balls arrived, the purchasers discovered that they were cheap forgeries. When the seller was...

Deborah Galarneau was hired as a Financial Advisor trainee by the Portland, Maine branch office of Merrill, Lynch, Pierce, Fenner & Smith (ML) in February 1989. She became a Financial Advisor (FA) in...

a . Lands End recently implemented a strategy of filling nearly all orders when the order is placed. In what year do you believe the company implemented this strategy and how is the strategy...

When a parent company uses the equity method to account for investments, the controlling interest in consolidated net income includes all of the following except The parent's income from its own...

Ferro Co. has outstanding 10-year noncallable bonds with a face value of $1,000. These bonds have a current market price of $1,278.41, a coupon rate of 11%, and annual coupon payments. The company...