Alice Skinflint has retained Honest Broker to assist her in selling her vacation home. Skinflint and Broker enter into a listing agreement whereunder the property is to be offered for sale for $300,000 cash. The listing is to expire on May 1. On April 25, Honest Broker receives an offer to purchase Skinflint's vacation home from I. M. Rich. The offer is for $300,000 cash, and Mr. Rich is a multimillionaire. Honest Broker calls Alice Skinflint and tells her that he has a purchaser for her vacation home and that he would like to meet with her before May 1 to have a contract signed. Alice Skinflint informs Honest Broker that she is going out of town for a vacation and will not be back until May 5 and that she cannot enter into a contract before the expiration of the listing on May 1. Alice Skinflint returns from her vacation on May 6, calls I. M. Rich, and signs a contract with I. M. Rich to sell the vacation home for $300,000. Honest Broker requests that Skinflint pay him a 6 percent commission on the sale. Skinflint refuses, saying that the property had not been sold before the expiration of the listing on May 1. What are the chances of Honest Broker recovering the commission from Skinflint?

CASE 5

5. Sam Seller offers to sell his home to Pat Purchaser for the sum of $160,000. Pat Purchaser responds that she will only purchase the home for $150,000. Sam Seller rejects Pat Purchaser's offer to purchase for $150,000. Pat Purchaser then offers $160,000 for Sam Seller's home. Is there a contract between Sam Seller and Pat Purchaser for the sale and purchase of the home at $160,000?

TWO DIFFERENT CASES MAKE SURE YOU PUT THE NUMBERS TO SEE THE DIFFERENCES

Answer rating: 100% (QA)

Case Analysis Case 1 Alice Skinflint and Honest Broker Honest Broker has a good chance of recovering ... View the full answer