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- 5 Marks
Question
Joe Ocran intended to sell two storey buildings. He agreed with Tawiah, an estate agent, that he would pay commission ‘on completion of sale’. Tawiah introduced a third party who wanted to buy both storey buildings, but Joe Ocran changed his mind and refused to sell. Tawiah is your neighbor who has heard you are reading a professional programme that contains business law. He is contemplating suing Joe for the commission and has approached you for advice.
Required:
Advise the parties whether there was a contracted relationship.
(5 marks)
Answer
Joe Ocran should be told that Tawiah did not complete the sale of the house because of Joe’s unilateral decision not to sell the house any longer to the third party. This indicates a breach of the contractual relationship with Tawiah.
In the case of Tawiah, he could be advised to sue Joe Ocran for breach of contract.
The remedy available to Tawiah is quantum meruit for introducing a third party.
(5 marks)
- Tags: Agency, Breach of Contract, Quantum Meruit
- Level: Level 1
- Uploader: Dotse