Douros Realty & Construction Co had a lead on a "prime" piece of real estate. Although Douros did not have a listing agreement with the seller of the property, he contacted Kelley Properties. Douros knew that Kelley was looking for a location for a

Question

commercial development. Douros contacted Kelley stating only that he had the "finest, most outstanding, viable location in the county and it just came on the market." Douros said he would reveal the location of the property and the owner's name if Kelley would sign an agreement which would require Kelley to pay a 10% commission if a sale of the property resulted. The agreement was signed. Four months later, Kelley bought the property after negotiating the deal himself. Kelley claims he does not owe a commission to Douros because there was insufficient consideration to support the payment of commission so large. Kelley claims that all Douros did in the entire transaction was to reveal the location of the property and the owner's name. Was there sufficient consideration to make this promise enforceable?

Answer 1

Consideration sufficient to support a contract may be either a detriment to the promisee or a benefit to the promisor. The detriment to the promisee may consist of his doing anything legally he is not bound to do. Douros did what he was not legally required to do: reveal the location of the property and the owner's name. This constitutes legal consideration; the courts will rarely look at the adequacy of the consideration.