Thomas contacted Welsh, a realtor, and asked him to be looking for property that is at least 20 acres, zoned commercial, within the city limits. Welsh responded that he would look for such a property and reminded Thomas that the typical finders fee in such a situation is 10% of the property asking price. If Thomas responds with "I know," the parties have formed an express contract by mutually manifesting assent to the essential terms.

Question

Thomas contacted Welsh, a realtor, and asked him to be looking for property that is at least 20 acres, zoned commercial, within the city limits.  Welsh responded that he would look for such a property and reminded Thomas that the typical finders fee in such a situation is 10% of the property asking price.  If Thomas responds with "I know," the parties have formed an express contract by mutually manifesting assent to the essential terms.

Quizplus · Accepted Answer

By Thomas acknowledging the finder's fee and not objecting to it, both parties have shown mutual assent to the terms, forming an express contract through their clear and explicit agreement on the essential terms, including the service to be performed and the compensation.

Thomas Contacted Welsh, a Realtor, and Asked Him to Be