Nothing in the agreement imposed a duty on the world`s business brokers to have a listing or to respond in the affirmative to an action. After providing the information that the property was for sale, World Business Brokers fulfilled the conditions of the particular business agreement. The parties were then bound by their contract. Many might think that the court`s decision is too inflexible by applying a strict construction approach in the interpretation of contracts and ignoring the reality of co-brokerage agreements, i.e. that there is an implication, that each party would put its own weight. In reversing this involvement, the court left the agreement they had reached, verîtes and everything. Based on subsequent written notifications, Monopoly Realty and World Business Brokers signed a co-brokerage agreement for the sale of the property. The short written agreement stipulated that the world`s business brokers received half of all commissions Monopoly Realty earned by selling the relevant real estate. As the only consideration for the deal, the world`s business brokers provided information to Monopoly Realty that the property was for sale.
This is apparently the extent to which World Business Brokers participated in the transaction. Monopoly Realty has performed all the typical tasks of trading agents without the additional support of World Business Brokers. In addition, at one point, after the agreement between the two agents, but before the actual sale of the property, Monopoly Realty attempted to revoke the agreement by stating that World Business Brokers was not doing any work to obtain a sale. Monopoly Realty eventually sold the property and got a real estate commission. However, the court found that the contract between Monopoly Realty and World Business Brokers, although a “bad deal” for Monopoly Realty, was binding and enforceable for all parties. It also found that the co-mediation agreement had been supported by an appropriate consideration (information that the property was for sale) and could not have been terminated by Monopoly Realty after receiving the information. The Tribunal found that World Business Brokers had fulfilled its obligations under the terms of the contract and that the contract was therefore enforceable. Complex commercial real estate transactions may need an experienced real estate agent to devote time and effort to sales.
If a cooperating broker is involved, the co-brokerage rules must be clear from the start. While he may say the obvious, take the time to reduce, write down everything that is expected to be part of a co-brokerage agreement if you agree to share a commission with another agent. In the event of a dispute, a court cannot read unspoken language. In most countries, laws that describe when real estate agents are entitled to commissions are simple and clear. As a general rule, certain provisions of the commission agreement must be written down.