LAW.coLAW.co

OLE NOKLEBY v. ANTON O. DOCKEN

Minnesota Supreme Court1916-10-27No. Nos. 19,900—(36)
134 Minn. 318

Summary

Holding. The court affirmed the judgment for the agent, holding that he earned his commission by procuring a buyer ready, willing, and able to purchase on the agreed terms, and that he was not responsible for the failure of the sale to close when the landowner's wife refused to sign the contract after the landowner himself was satisfied with the arrangement.

A landowner hired a real estate agent to find a buyer for property, agreeing to pay a $100 commission if the sale could be closed. The agent procured a buyer who executed a written purchase contract with the landowner at the agreed price and terms. The landowner's wife, however, refused to sign the contract even though the landowner himself was satisfied with the terms and willing to proceed. The landowner then refused to pay the agent's commission, claiming the employment required that both he and his wife approve the sale.

The trial court directed a verdict in favor of the agent, finding he had fully performed his contractual obligation by locating a qualified buyer willing to purchase on acceptable terms. The court reasoned that the agent should not be penalized because the landowner's wife declined to execute the contract—a circumstance beyond the agent's control and not part of his contractual duty. The landowner appealed, but the appellate court found no error in the trial court's judgment or evidentiary rulings.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether an agent earns a real estate commission upon finding a qualified buyer versus requiring the transaction to close
  • Whether conditions to payment may be imposed on parties not bound by the initial employment contract
  • Whether an agent may be held liable for performance failures caused by the employer's family members

Procedural posture

The defendant appealed from an order denying his motion for a new trial after the trial court directed a verdict in favor of the plaintiff at the close of evidence.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Bunn, J.

The complaint alleged that defendant employed plaintiff to find a buyer for a quarter section of land owned by defendant, and agreed to pay plaintiff $100 for his services, that plaintiff found a person who entered into a contract with defendant for the purchase of the land, but that defendant refused to pay the commission. The answer admitted that defendant employed plaintiff to sell the land, but alleged that the employment was upon the condition that defendant should reeeive from the purchaser a first payment of at least $2,000, and that the sale should be in all particulars satisfactory to defendant and his wife. It alleged that plaintiff did not sell the land or find a purchaser who was ready, able and willing to make a first payment of $2,000, or to purchase upon terms and conditions that were satisfactory to defendant and his wife. The reply was a general denial. The issues thus framed were tried to a jury. At the close of the evidence the court directed a verdict for plaintiff. Defendant appeals from an order denying his motion for a new trial.

Defendant complains of the action of the trial court in directing a verdict, and of certain rulings on the admission of evidence.

Plaintiff’s employment to sell the land for defendant is admitted by the answer. The contract was in writing, signed by defendant, and reads as follows: “Agreement between Ole Nokleby and Anton Docken are following: For ¿4 section of land at $37.50 per acre if sale can be closed then Docken is to pay $100 in commission to Noldeby.” .

It is admitted that plaintiff procured a purchaser and that defendant and this purchaser entered into a written contract by the terms of which defendant agreed to convey the land to the purchaser for the sum of $6,000, which the latter agreed to pay in annual instalments of $100 each, with interest. This contract was executed and acknowledged by defendant and the purchaser. Neither in the body of the contract nor in the acknowledgment is there any mention of the vendor’s wife, but there was evidence that she was expected to execute it later. It appears that she refused, though defendant was satisfied and willing to carry out the contract.

We think the trial court was correct in the view that it conclusively appeared that plaintiff had performed his contract and earned his commission. It was no fault of his that the contract was not carried out. He should not suffer because defendant’s wife refused to execute the contract after he had procured a purchaser ready, able and willing to buy on terms that were satisfactory to defendant. The latter testified that the terms were satisfactory to him, the price was that named in the commission con- tract, and it does not appear that plaintiff undertook to satisfy defendant’s wife.. It is true that plaintiff was to have his commission “if sale can be closed,” but this sale was closed as far as plaintiff, defendant and the purchaser could close it.

Error is assigned in the rejection of evidence offered to show that the contract of sale executed by defendant and the purchaser, was not delivered, the claim being that the delivery was conditioned upon defendant’s wife signing. We discover no error here. The fact remains that plaintiff performed his contract.

Defendant offered in evidence the record in an action brought by the purchaser against him to recover damages for breach of the sale contract, and assigns the rejection of this evidence as error. We think the ruling was correct. Plaintiff was not a party to this suit and the verdict in favor of the defendant could not bind him or affect his right to recover in the present case.

We find no error that should affect the result, and conclude that the trial court was right in refusing a new trial.

Order affirmed.