Webb Owens signed a listing agreement with Tom-Tom Realty to sell his 7,200-acre ranch. Ralph Watkins, the listing agent from Tom-Tom, assures Webb that if Webb finds a buyer there is no commission due and owing. However, the title at the top of the signed listing agreement is "Exclusive Right to Sell." Webb does indeed find a buyer for the ranch, the sale goes through, and both Ralph and Tom-Tom demand their commissions. Must Owens pay the commission?

Question

Quizplus · Accepted Answer

DThe "Exclusive Right to Sell" listing agreement means that the broker is owed a commission regardless of who finds the buyer. The parol evidence rule supports enforcing the written agreement as it stands, making choice C correct. However, D is also correct because if Watkins assured Owens verbally that no commission would be due if Owens found the buyer himself, this could be considered misrepresentation, conflicting with the written agreement.

Webb Owens Signed a Listing Agreement with Tom-Tom Realty to Sell