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Sheree Demming Contacted Cheryl Underwood, a Real Estate Broker in the Bloomington

Question 116

Multiple Choice

Sheree Demming contacted Cheryl Underwood, a real estate broker in the Bloomington, Indiana area. Ms. Demming discussed with Ms. Underwood her strategy for investing in properties in and around Indiana University and then developing them. They had agreed to a 7% commission for Ms. Underwood on any properties purchased. Ms. Deming then asked Ms. Underwood to pursue the purchase of several properties. The owners were not interested in selling initially, but Ms. Deming told Ms. Underwood to keep trying. Ms. Underwood purchased one of the properties Ms. Deming was interested in for herself and then failed to tell Ms. Deming that the seller of one of the other properties was inviting written offers. What if the agreement between Ms. Demming and Ms. Underwood were oral?


A) An oral agreement for a commission is generally unenforceable
B) There is no principal/agent relationship if the agreement is oral
C) An oral agreement for a commission is enforceable if the broker/agent has relied upon it
D) Ms. Demming would owe a reasonable commission, but not necessarily 7%

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