Chapter 5 CASE PROBLEM

Graebow V. Sunrise Real Estate 

 

In May 1967, Dr. Black listed his 156-acre vineyard with Granite Realty for $234,000. The exclusive right to sell agreement, which provided for a 5% commission, specified that the agency would terminate on December 31, 1968.

 

Dr. Black later gave written consent to have the listing transferred from Granite Realty to Sunrise Real Estate. The list price was reduced to $187,200.

 

In June 1968, Dr. Black died. Without any help from the real estate agents, the executor of Dr. Black’s estate sold the vineyard in November for $152,000.

 

Believing they were entitled to their commission under the exclusive right to sell agreement, Sunrise Real Estate filed a claim against Dr. Black’s estate for $7,600 (5% of the sale price). The executor rejected the claim, so Sunrise Real Estate sued the estate.

 

Was Sunrise Real Estate entitled to its commission? Were they entitled to damages for breach of contract? Why or why not? What if Sunrise Real Estate had been the procuring cause of the November sale?