Question

Scheerer, a licensed real estate agent, and Fisher, a manager of commercial real estate, worked together on past real estate deals and knew each other from their business relationship. Scheerer gave Fisher a tip that some commercial real estate was on the market that Fisher might be interested in purchasing. Fisher made an offer to buy the properties and, with this offer, orally contracted for a 2 percent commission for Scheerer from the seller and another 2 percent commission from himself. Unfortunately, that deal fell apart. Shortly thereafter, however, Fisher formed another company that purchased real estate and bought the very same property. Scheerer was not paid a commission on the deal and sued, contending that he was an agent for Fisher and that an implied contract for his services had been breached. Fisher argued that no formal contract in writing regarding the commission or Scheerer's agency relationship was ever created.

[ Scheerer v.Fisher, 688 S.E.2d 472 (2010).]

Did the authority of the agent in this case need to be in writing to be legally binding? Does the fact that there was no separate, written agency contract between Fisher and Scheerer mean that an agency relationship did not exist?

Answer 1

Did the authority of the agent in this case need to be in writing to be legally binding? Does the fact that there was no separate, written agency contract between Fisher and Scheerer mean that an agency relationship did not exist?

Fisher's handler was Scheerer. An agent's authority does not have to be registered, and the court discusses the essence of the relationship. From the initial sales contract, which broke down, it was clear that Fisher regarded Scheerer as his boss, who was paying him a regular fee for his services. This does not mean that an agency exists as there is no clear written agency arrangement between Fisher and Scheerer. In quantum meruit, Scheerer may recover the value of the services that Fisher has provided by identifying the property which Fisher wanted to purchase. Fisher recognized that Scheerer is an agent and that it should be paid as a specialist on the property market

Scheerer was the agent of Fisher, who doesn't have to write the essence of the relationship in writing. In the original sales contract it was clear that Fisher accepted Scheerer as his agent and would pay him a standard service fee. Since the initial contract was terminated, that does not mean that there was no separate written agency agreement between Fisher and Scheerer. Through finding the property that Fisher wanted to purchase, Scheerer would be paid for the value of the services it provided to Fisher.

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