On May 1, Bobbi-Ann, a real estate agent, and Corporate Properties, Inc, a commercial property owner, sign an agreement about the sale ofCorporate Properties'office building. Under the terms, if a buyer makes a serious offer within sixty days, Corporate
Propertiesmust pay Bobbi-Ann'scommission. Bobbi-Annputs signs on the building, ads in real estate pamphlets and a locally focused Web site, and features the property in a "walking" tour online. On June 1, Corporate Propertiestells Bobbi-Annthat it is canceling their arrangement. Ten days later, Corporate Propertiescloses a sale on the building without Bobbi-Ann'sparticipation. Bobbi-Annfiles a suit against Corporate Propertiesfor the amount of her commission. In whose favor is the court likely to rule, and why?
The court is likely to issue a judgment in Bobbi-Ann'sfavor on the basis that the parties in this situation had agreed to a unilateral contract. The court would likely reason that Bobbi-Annhad begun performance under this contract by putting up the signs, placing the ads, and featuring a tour of the building on the Internet.
Under the present-day view of unilateral contracts, once a party to such a contract has begun performance, the other party cannot legitimately revoke or otherwise cancel the deal. Thus, Corporate Properties'attempted revocation in this problem—which was probably based on a desire to avoid paying a commission to Bobbi-Ann—would constitute a breach of its contract with Bobbi-Ann, and Corporate Properties would owe Bobbi-Annher commission even though Bobbi-Anndid not participate in the closing of the sale on the property.
The problem does not mention whether Bobbi-Annfound the buyer, but Corporate Propertieswould most likely be liable for the payment of the commission under the terms of the contract with Bobbi-Anneven if Corporate Propertiesfound the buyer herself.
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