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Charles S. Bruce vs. Ida M. Meserve

Massachusetts Supreme Judicial Court1917-11-27
228 Mass. 463

Summary

Holding. The broker is not entitled to recover a commission because he failed to procure a buyer who was able, ready, and willing to purchase the defendant's property at her demanded price. Judgment entered for the defendant.

A real estate broker sought a commission for finding a buyer for the defendant's property on Massachusetts Avenue in Lexington. The broker had been appointed as the exclusive agent to procure a purchaser willing to buy at a price acceptable to the defendant. The broker initially secured an $11,000 offer from a potential buyer named Viano, which the defendant rejected. Subsequently, the defendant negotiated directly with Viano and they reached an oral agreement for $12,500, which the defendant reduced to writing and signed, though Viano did not sign the document. The defendant provided a $500 deposit, but Viano later refused to complete the purchase, claiming the property's street frontage fell short of what was promised.

The court found the broker had not performed the services required by his agreement with the defendant. Under the broker's contract, he was obligated to procure a purchaser who was able, ready, and willing to buy at a price satisfactory to the defendant. Although Viano made a higher offer than the broker had secured, Viano ultimately refused to purchase the defendant's property at the agreed price because of a dispute over frontage dimensions. Since Viano never became bound to purchase and no completed sale occurred, the broker had no basis for collecting a commission.

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

Key issues

  • Whether a broker earns a commission when the seller directly negotiates and makes an agreement with a prospect the broker introduced
  • What constitutes performance of a broker's obligation to procure a willing and ready buyer
  • Whether an unexecuted contract signed only by the seller can bind a prospective purchaser to complete a sale

Procedural posture

The plaintiff-broker appealed from a judgment entered for the defendant after trial on the merits.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Rugg, C. J.

This is an action by a broker to recover a commission for procuring a customer to buy the defendant’s real estate. There was evidence from which it might have been found, as the view most favorable to the plaintiff, that he was appointed by the defendant exclusive agent to get “a purchaser for the sale of her Massachusetts Avenue property;” that he was familiar with the property and told her it was well worth eleven or twelve thousand dollars; that he secured an offer of $11,000 from one Viano, and that when this was communicated to the defendant she replied, “When he offers $11,000 for it, he will give $11,700;” that subsequently the plaintiff was told that an agreement had been made with Viano for the sale of the property for $12,500; but the plaintiff had no participation in the making of it. The facts about the alleged agreement were that the defendant and Viano had some negotiations, as a result of which Viano orally offered $12,500 and she accepted that offer. Thereafter he prepared a paper, which she signed and which he did not sign, of this tenor: “I agree to sell to Mr. Felix Viano my property on 454 Mass. Ave., Lexington, twelve thousand five hundred dollars, and I receive five hundred dollars as deposit and as part payment: Balance to be payed June 1, 1916, I agree to give clear title free from all incomance, and also a plan of land to show about 75 feet front.” The $ 500 was paid to her. It appeared on a survey of the lot that its frontage on the street was seventy-one and one tenth feet. Viano refused to take the lot unless a reduction was made in the price “at the rate of about $166 a foot for four feet, which he said were missing.” The defendant declined to make the reduction. Viano has brought an action against her to recover the $500 paid by him.

The plaintiff is not entitled to recover on these facts. The plaintiff’s agreement in substance was that he should procure a purchaser able, ready and willing to buy the defendant’s property at a price satisfactory to her. It would not have been necessary for him to procure the execution of a contract to buy binding upon the purchaser. Fitzpatrick v. Gilson, 176 Mass. 477. Leland v. Barber, 228 Mass. 144. He did not perform that agreement. If it be assumed that Viano was able to buy the land, the only offer which the plaintiff secured from him was $11,000, and that offer the defendant refused. If it be also assumed that she stated to the plaintiff that an offer of $11,700 would be accepted, the plaintiff did not act on that statement or at least did not procure that offer and manifestly it subsequently was withdrawn by her before the conclusion of her negotiations with Viano.

The plaintiff’s agreement with the defendant would have been performed to the extent that he as exclusive agent to get a buyer might recover, if the defendant had made either an actual sale to the customer introduced by him, or an agreement binding such customer to buy. Rice v. Mayo, 107 Mass. 550. Ward v. Cobb, 148 Mass. 518. Johnson v. Holland, 211 Mass. 363. Hutchinson v. Plant, 218 Mass. 148, 153. But she did not do either. There was no sale. There was no agreement binding Viano to buy. The agreement was signed by the defendant alone and only bound her to sell. Viano did not sign it. Since the agreement concerned the sale of land, he could not be compelled in equity to perform it, nor be required by action at law to pay damages for its breach. An unperformed oral contract respecting land affords no ground for relief under the statute of frauds.

The defendant was ready to sell her lot of land for $12,500. The lot of land for which Viano was ready to pay that price was a lot of land having a frontage of seventy-five feet. The defendant did not own and could not sell such a lot of land. Viano refused to pay the price demanded by the defendant for the lot of land which she owned. Therefore there was no customer able, ready and willing to buy "the lot owned by the defendant at the price asked by her. Since there was no actual sale of the defendant’s lot, no contract binding Viano to purchase the defendant’s lot, and Viano was not ready to buy the defendant’s lot at the price which she demanded, there is no ground on which the plaintiff can recover. Clark v. Bonner, 217 Mass. 201. Woods v. Matthews, 224 Mass. 577, 584, 585.

Cases relied on by the plaintiff, such as Cohen v. Ames, 205 Mass. 186, 188, and Taylor v. Schofield, 191 Mass. 1, 4, are distinguishable on the ground that in those cases the failure to complete the sale was due to the refusal of the landowner and not of the proposed purchaser. The mere omission of the landowner to procure a contract binding upon the proposed purchaser does not entitle the broker to his commission under the circumstances here disclosed. As a precaution it may be added that nothing is intimated as to the merits of the action at law of Viano against the defendant.

The exceptions must be sustained and, as the case appears to have been fully tried on its merits, and discloses no basis for recovery by the plaintiff, judgment is to be entered for the defendant under St. 1909, c. 236.

So ordered.