Thornes Ltd. v. Gosse, (1971) 1 Nfld. & P.E.I.R. 583 (NFCA)

JudgeFurlong, C.J., Puddester and Higgins, JJ.
CourtNewfoundland Court of Appeal
Case DateOctober 06, 1971
JurisdictionNewfoundland and Labrador
Citations(1971), 1 Nfld. & P.E.I.R. 583 (NFCA)

Thornes Ltd. v. Gosse (1971), 1 Nfld. & P.E.I.R. 583 (NFCA)

MLB headnote and full text

Thornes Limited v. Gosse

Indexed As: Thornes Ltd. v. Gosse

Newfoundland Supreme Court

On Appeal

Furlong, C.J., Puddester and Higgins, JJ.

October 6, 1971.

Summary:

Appeal Court dismissed appeal and affirmed the decision of the Trial Court dismissing the claim of the plaintiff real estate agent for a commission on the sale of land. Defendant owner gave the plaintiff an exclusive listing agreement for the sale of his property. However, the previous owner had an option to purchase the property which was exercised.

Appeal court held that the option covenant created a condition precedent to the operation of the listing agreement and that before any sale under the listing agreement could be made, the previous owner had to be offered the property and refuse to purchase it. Since the condition precedent was not discharged, Appeal Court held plaintiff not entitled to a commission on the sale.

Brokers - Topic 4069

Compensation - The compensation agreement - Real estate listing agreement - Real property - Contract - Sales commission - Exclusive listing agreement given by owner to real estate agent - Previous owner holding option to purchase property - Option exercised - Appeal Court held option covenant set up a condition precedent to operation of listing agreement - The Newfoundland Court of Appeal held real estate agent not entitled to commission on sale.

Counsel:

Edward P. Poole, for the Plaintiff-appellant;

Michael J. Monaghan, for the Defendant-Respondent.

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