Ms. Black wished to purchase Mr. Green’s farm. After lengthy negotiation, the two parties drew up and signed an agreement of purchase and sale for the farm with the assistance of and in the presence of Green’s real-estate agent, Simms. The agreement that the parties signed was a standard, preprinted form used by all local real-estate agents that contained a clause which was an irrevocable direction by the vendor of the land, Green, to the purchaser, Black, to deduct from the sale price and pay the real-estate agent’s commission directly to Simms on the closing day of the transaction. The preprinted form had printed on it a black circle with the word “Seal” written under it. Also, above the line for Green’s signature were printed the words “In witness whereof I have hereunto set my hand and seal.” Beside Green’s signature line was a place for a witness to sign the agreement. Immediately above this place appeared the preprinted words “Signed, sealed and delivered in the presence of.” Green and Black each had lawyers looking after the details of the transaction and each gave a copy of the agreement to their respective lawyers.
Shortly before the closing of the sale, Green’s lawyer prepared some final paperwork and had Green sign several important documents. Among them was a direction to Black and Black’s lawyer to make the cheque for the full amount of the purchase price payable to Green. On closing, Black’s lawyer presented to Green’s lawyer a cheque made payable to Green for the full purchase price of the farm. Green’s lawyer later turned over the cheque to Green.
After the closing, Simms contacted Green to request delivery of his commission cheque. Green replied that neither he nor his lawyer had received a cheque for Simms from Black’s lawyer on closing and suggested that Simms contact Black himself since that was the arrangement. When Simms called Black, Black stated that as far as she was concerned, she had paid for the farm and did not owe anyone any more money.
Taking the above information, what would be:
a) the reasons for the lawsuit
b) the identity and arguments of the plaintiff(s) and defendant(s), respectively.
Answer a= The main reason for the lawsuit is that the Green is the culprit of committing the Fiduciary offense against the agent when he changed the contract terms. In the given case, the breach of contract was done by the vendor, buyer, and lawyers against the agent.
Answer b= The Black purchaser and the lawyer signed the contract
negligently having different terms that result in the agent’s loss.
They both are culprit of committing the tort law of negligence in
order to provide the commission of the agent for the loss incurred
due to their negligence. They can defend themselves by stating that
they had no intention to harm the interest of the agent.
When it comes to Green and her layer, they changed the terms of the
contract that leads to the losses of the agent in the form of loss
of commission. They are the culprit of committing a fiduciary
offense and thus they have the liability to pay the compensation to
the agent as the failure to protect the interest of the
agent.
An agent can claim that rest of the parties acted negligently and
committed the breach of fiduciary duty that results in the loss of
commission and thus has the right to being compensated as per
common law of agent
Ms. Black wished to purchase Mr. Green’s farm. After lengthy negotiation, the two parties drew up...
Text Book:- John H. Willes, Contemporary Canadian Business Law Business Law Case analysis 1. Facts (Point Form) – 10% This may sound obvious, but before you can analyze or apply the relevant law to a specific set of facts, you must clearly understand those facts. In other words, you should read through the case problem carefully—more than once, if necessary—to make sure you understand the identity of the plaintiff(s) and defendant(s) in the case and the progression of events that...