Question

CASE STUDY

BUSINESS LAW





Anderson Darragh, a real estate agent for RE/MAX, informed Bryan Thomas, a real estate developer, that he knew of a commercial property Thomas might be interested in buying. Thomas told Darragh that he was interested but wanted more information about the property. Darragh revealed the address of the property and the selling price. Darragh also stated that if Thomas bought the property, Thomas would have to pay RE/MAX an 8 percent commission. Darragh met with the owner of the property and obtained information regarding the lease agreements of the current tenants, monthly rent payments, and relevant expenses. Darragh also went to City Hall and compiled data related to property taxes and zoning. Darragh gave all of the information he had gathered to Thomas at a meeting on March 16. Darragh also included a document stating that the 8 percent commission should be paid to RE/MAX after the purchase of the property was complete. Thomas did not agree to the 8 percent commission at the meeting. On March 21, Darragh arranged for Thomas to meet with the property owner and during that meeting, Thomas purchased the property. After the sale was complete, Thomas refused to pay the 8 percent commission to RE/MAX.

This Case Analysis is worth a maximum of 25 points. Please complete the following for your assignment:

What is the legal issue involved in this case? – 5 points

Based on the Issue identified, provide an argument for Darragh using facts of the case and relevant legal theory to support it. – 5 points

Based on the Issue identified, provide an argument for Thomas using facts of the case and relevant legal theory to support it. – 5 points

Based on the facts given, and what you know about the legal issues involved, how was this case decided? In favor of Darragh; or Thomas? Provide an explanation. – 5 points

Case is typed according to the guidelines in the syllabus and is free of grammar and spelling mistakes. – 5 points

Answer 1

I think that even though there have been talks between Darragh and Thomas, there was no contract between the two of them.

The case stated that Darragh presented a document stating the Thomas will pay a commission of 8% to RE/MAX if Thomas buys the property but Thomas did not agree to the rate. Thus, it can be inferred that there was no signing of contract or memorandum of agreement.

I think that Darragh can't legally go after Thomas because despite all his efforts, Thomas directly dealt with the owner in buying said property.

Darragh overcompensated by giving out all the salient information regarding the property without putting any agreement in writing as well as having said document notarized.