Stone v. Kreis

<p>1. Pbincipal and agent, § 167*—when, agent not personally liable. Where an agent discloses the fact of his agency, or where the other party knows at the time that he is acting as such agent, the latter will not be liable, unless he binds himself to become responsible.</p> <p>2. Bbokebs, § 7*—what evidence tends to show real estate broker bound as principal. In an action by real estate brokers to recover commissions, where the defense was that defendant was acting as agent, evidence held to tend to show that defendant was bound as principal.</p> <p>3. Bbokebs, § 38*—what is duty of real estate broker under contract for commissions. Where real estate brokers make a contract with an owner of real estate to sell his property on commission, the duty of such brokers is to find for the owner a purchaser ready, willing and able to purchase the property on terms acceptable to the owner.</p> <p>4. Bbokebs, § 95*—when refusal of instruction as to good faith of owner in making sale is erroneous. In an action by real estate brokers to recover commissions, where it appeared that after notifying plaintiffs of his discontinuance of negotiations with their customer, defendant sold the property to another person who conveyed it to such customer, held that it was reversible error to refuse an instruction requested by defendant as to his good faith apart from that of the customer, while giving an instruction requested by plaintiffs as to the good faith of the customer together with that of defendant, since the given instruction was misleading, and since each party had the right to have the jury instructed upon his theory of the case, if such theory had a basis in the evidence on which to rest.</p> <p>5. Brokers, § 54*—when good faith of vendor in abandoning negotiations is controlling. In an action by real estate brokers to recover a commission, where it appeared that after considerable negotiation with plaintiffs’ customer, both such customer and defendant informed plaintiffs that they would not negotiate further in reference to the transaction, but yet defendant later sold the property to another person, who in turn conveyed it to plaintiffs’ customer, the controlling issue of fact presented was that of defendant’s good faith in abandoning the negotiations.</p> <p>On Rehearing.</p> <p>1. Brokers, § 48*—when good faith of owner in making sale is not material. Where, after ■ discontinuing dealings with a customer procured by brokers, an owner of real estate knowingly deals with such customer or with a third party representing such custoiher, the element of good faith in the transaction is not material as respects the question of the liability of the owner to plaintiffs for commissions, although the sale was at a much lower price than that offered by the customer through plaintiffs as brokers.</p> <p>2. Brokers, § 48*—when good faith of owner in making sale is material. Where, after discontinuing dealings with a customer procured by brokers, an owner of real estate sells to such customer at a much lower price than that offered through plaintiffs as brokers, the element of good faith in the defendant is material as respects the liability of defendant to plaintiffs for commissions, where it appears that the negotiations actually resulting in the sale were entered upon through a third party who was the secret representative of such customer, of which defendant was ignorant, and where it also appears that after due inquiry defendant was led to believe that he was dealing with an entirely new party and that he would not be obliged to pay commissions, thus inducing him to sell at the lower price, since in such case, if defendant was acting in good faith, the controlling influences of the sale were not those set in motion by plaintiffs.</p>