Full question:
I have a real estate listing with a 5% commission, 10% lease commission. I procured a lease to purchase contract, one year, rent $700 month. Sat with tenant/buyer and seller/landlord, negotiated terms drew up contracts. The seller told the buyer to go ahead and start moving in. He told me he wanted his daughter (lawyer) to review the paperwork. The landlord/seller contacted tenant/buyer behind my back and said that he decided not to sell, only lease for the year now. Dont sign the paperwork not give the deposits to the rents to realtor. Buyer called me and I called the seller. He said he decided he is taking the house off of the market. I expressed that per the contract he was to conduct all negotiations throught me, I am procuring cause for renter/buyer and he owes me 10% of the 1 year lease ($840) and the 5% commission upon close. He said he wasn't going to sell... that he will pay me a "Finders" fee ($150) and isn't going to pay any commission. Verbal agreement is binding in Colorado. I need some offense for detrimental reliance and procuring cause. Listing is good through June 2009.
- Category: Contracts
- Subcategory: Breach of Contract
- Date:
- State: Colorado
Answer:
Contracts are legally enforceable agreements that create obligations between parties. An oral contract, like the one you may have, can be enforced, but proving its existence and terms can be challenging. Generally, oral contracts have a shorter time frame for enforcing rights compared to written contracts.
If a party fails to perform their contractual duties, it's considered a breach of contract. This can lead to a legal action for damages, which aims to compensate the injured party for their losses. Remedies for breach include money damages, restitution, rescission, reformation, and specific performance.
Detrimental reliance, or promissory estoppel, may apply in your case. This legal principle holds that if one party relies on a promise from another, and that reliance leads to harm, the promise may be enforced to avoid injustice. To establish detrimental reliance, you must show that:
- A promise was made.
- Your reliance on that promise was reasonable and foreseeable.
- You took action based on that promise.
- Your reliance caused you harm.
- Enforcing the promise is necessary to prevent injustice.
In Colorado, verbal agreements are generally binding. You may have a strong case for claiming your commission based on your role as the procuring cause and the reliance on the seller's initial commitments.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.