Question

Clifford Taylor, real estate entrepreneur in Indianapolis, owned a number of empty lots suitable for development within the city. He hired Drew Miller a real estate agent to sell one his lot for $750,000 within the next 30 days. Miller was to receive a 5% commission if he completed the sale.

The day following his appointment, Miller visited the office of Thomas Kinkaid. Kinkaid, a real estate developer, was willing to pay as much as $850,000 for the vacant lot, but promised to pay Miller a bonus of $25,000 if he could arrange for the sale of the lot for $750,000. Miller agreed.

The vacant lot was sold for $750,000. Taylor, however, refused to pay Miller the 5% commission and Kinkaid refused to pay the $25,000 bonus. Miller is now suing both Taylor and Kinkaid. What would be the result of this lawsuit? Please discuss.

Question 3

Joseph Sinclair was a lower level administrator of the Wheeling Pennsylvania Power Co. He received a temporary assignment to the Unpaid customer department. His new assignment called for him to turn off power to customers who had not paid their power bill for four months.

One of the customers on his delinquent customer list was the American Salmon Farm Fishery. The Salmon Farm Fishery informed Sinclair that it was not delinquent in paying their power bill, but Sinclair turned off the power. This was done at a critical period in the incubation of new salmon, and the entire batch was destroyed. Salmon Farm Fishery sued Sinclair for $54,000, won the judgment, and Sinclair paid. Sinclair is now suing the Power company. What result? Please discuss.

Answer 1

1. The result of this lawsuit would be that Taylor would have to pay commission of 5% to Miller on the completed sale as per the contract between Taylor and Miller since he was hired by Taylor to sell the lot for $750,000 which he achieved successfully. Hence Taylor is liable to pay 5% commission to Miller. However, Kinkaid is not liable to pay $25,000 to Miller since there was no legal agreement between the two parties and even if there was any such agreement, it was illegal and unethical for Miller to take such amount from Kinkaid since he was working on behalf of Taylor and hence cannot accept amount from Kinkaid.

2. In my opinion, Sinclair would win the case against Power company since he was working as per the instructions provided to him that he had to turn off power to customers who had not paid their power bill for four months. He successfully executed the requirements of the company and worked according to their directions. Hence Sinclair would win the case against Power company as he did what was asked by the company.