Question

Sullivan Brothers Realty & Construction Co. had a lead on a "prime" piece of real estate. Although Sullivan Brothers did not have a listing agreement with the seller of the property, he contacted Plummer Properties. Sullivan Brothers knew that Plummer was looking for a location for a commercial development. Sullivan Brothers contacted Plummer stating only that he had the "finest, most outstanding, viable location in the county and it just came on the market." Sullivan Brothers said he would reveal the location of the property and the owner's name if Plummer would sign an agreement which would require Plummer to pay a 10% commission if a sale of the property resulted. The agreement was signed. Four months later, Plummer bought the property after negotiating the deal himself. Plummer claims he does not owe a commission to Sullivan Brothers because there was insufficient consideration to support the payment of commission so large. Plummer claims that all Sullivan Brothers did in the entire transaction was to reveal the location of the property and the owner's name. Was there sufficient consideration to make this promise enforceable? Why or why not? Explain the legal principles

Answer 1

Yes, the contract is enforceable. When Plummer was signing the agreement with Sullivan brothers, he exactly knew that Sullivan brothers would just provide the information of site and owner and take no part on the negotiation of the deal. This was mutually accepted by both parties and Plummer accepted Sullivan brothers offer to provide information for 10% commission. There is sufficient consideration for both parties, Plummer was looking for a prime property and information provided on it formed consideration.

The contract meets all required principles - Offer, acceptance, the presence of consideration, the capacity of parties and for a legal reason.