Principal's Duties. Brenda Tarver worked as an independent ...

[V@ndy87]

Principal's Duties. Brenda Tarver worked as an independent contractor with Dianne Landers's real estate agency. The agents in the firm worked on a commission basis, and Tarver's contract read that she would receive 30 percent of the agency's commissions to which she was entitled as either listing and/or selling agent in connection with a sale. In the spring of 1984 Charles Smith and his wife contacted the agency and advertised in the local newspaper. The Smiths were referred to Tarver, who showed them the property and handled their offer to purchase the property and the seller's counteroffer. In all, Tarver negotiated three offers and three counteroffers between the seller and the buyer. Later, however, the Smiths returned to the agency and, because Tarver was out of the office, negotiated with Dianne Landers concerning the last counteroffer they had rejected. After some modifications were made, they reached an agreement with the seller and purchased the property. Landers would not pay Tarver a commission for the sale because Tarver had not negotiated the final purchase. Tarver sued to recover her commission on the ground that it was customary in the real estate office that when the initial selling agent was absent from the office, another agent would handle negotiationsbut not receive the commission if a sale resulted. Who will prevail in court? Explain.

Question 2

A person appointed by an agent to help the agent for certain specific transactions is a special agent.
 a. True
  b. False
  Indicate whether the statement is true or false

[Danny Ewald]

Answer to Question 1

Principal's duties
The question of whether Landers had a duty to compensate Tarver rested on the issue of whether Tarver was the selling agent in this case. If so, by their contract terms, Tarver would be entitled to her commission. The appellate court affirmed the trial court's holding that Tarver was the selling agent and entitled to her commission as stipulated by the contract. Lacking any written definition of what constituted the selling agent in the sales conducted through the real estate agency, the court based its decision on the practices that had customarily been followed in the office. Tarver was undoubtedly the selling agent, in the court's eyes, because she had done all the negotiating with the Smiths and written up the offers and counteroffers. When the Smiths paid their final visit to the office, they were apparently ready to buy but with minor modifications to the agreementmodificati ons penciled in by Landers. Landers therefore had a duty to compensate Tarver, as agreed upon by the parties.

Answer to Question 2

TRUE