Tuesday, March 26, 2013

A.A. Marchiondo v. Frank Scheck case brief

A.A. Marchiondo v. Frank Scheck case brief summary
432 P.2d 405 (1967)

Plaintiff appealed a judgment of the District Court of Bernalillo County (New Mexico) for defendant in a breach of contract action arising from a sales commission included in defendant's unilateral offer to sell real estate.

OVERVIEW: Defendant unilaterally offered, in writing, to sell real estate to a specified prospective buyer and agreed to pay a percentage of the sales price to plaintiff broker as a commission. The offer fixed a six-day time limit for acceptance. Defendant, in writing, then revoked the offer. The revocation was received by plaintiff on the morning of the sixth day. Later that day, plaintiff obtained the offeree's acceptance. Plaintiff, claiming breach of contract, sued defendant for the commission stated in the offer. On the facts, the trial court dismissed the complaint.

The court remanded for a finding on plaintiff's partial performance because, if plaintiff had partially performed prior to receipt of defendant's revocation, a contract with condition resulted, requiring payment of plaintiff's commission.

-Once partial performance is begun pursuant to the offer made, a contract results.
-This contract has been termed a contract with conditions or an option contract.

OUTCOME: Decision reversed and remanded because a contract with a condition may have existed between the parties if plaintiff partially performed prior to defendant's revocation.

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