February 2, 1916
FACTS:
Macondray & Co., through real estate broker George Sellner, agreed to sell a parcel of land to Antonio Barretto for P18,892.50.
Barretto agreed to buy on the condition that before turning over the purchase price, the title deeds and deed of conveyance should be found to be in due and legal form.
It was understood that Barretto should have a reasonable time in which to examine said documents. Young, Macondray’s General Manager, later sent Sellner a letter advising him that the sale would be cancelled unless the purchase price was paid at 5 PM on that same day.
Sellner received Barretto’s check 36 hours after the time designated by Young, who refused to accept the check and claimed that the sale had been cancelled upon Sellner’s failure to turn over the purchase price at the hour designated.
The instant action was filed to recover damages allegedly suffered by Macondray due to the sale, allegedly made by Sellner after his authority had been revoked.
ISSUE:
Whether Macondray has a cause of action for monetary damages against Sellner. – NO
HELD:
At the time fixed by Young for termination of the negotiations, Sellner had already earned the commissions agreed upon, and could not be deprived thereof by the arbitrary action of Macondray in declining to execute the contract of sale for some reason personal to itself.
Generally, the broker becomes entitled to the usual commissions whenever he brings to his principal a party who is able and willing to take the property and enter into a valid contract.
The act of the agent in finding a purchaser required time and labor for its completion. It would be the height of injustice to permit the principal then to withdraw the authority and terminate the agency as against an express provision of the contract, and perchance reap the benefit of the agent's labors, without being liable to him for his commissions.