Stewart v. Mather

32 Wis. 344
CourtWisconsin Supreme Court
DecidedJanuary 15, 1873
StatusPublished
Cited by74 cases

This text of 32 Wis. 344 (Stewart v. Mather) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stewart v. Mather, 32 Wis. 344 (Wis. 1873).

Opinion

DIXON, O. J.

The jury, under the instructions of the court, have either found that the plaintiff, for the commission named, undertook to produce a party ready and willing to make the purchase at such price as might be agreed upon between the defendants and such purchaser when brought together, or they have found that the plaintiff, for a like commission, undertook to procure a purchaser at the price of fifteen dollars per acre [349]*349for tbe farm, and that when the purchaser and the defendants came together, the defendants consented to sell and did sell the property to the purchaser furnished by the plaintiff, at a less price. The former was the agreement as testified to by the plaintiff, the latter that to which defendants testified. There was no testimony tending to establish any other or different agreement between the parties than one or the other of these. The court instructed the jury, if they found from the evidence that the plaintiff contracted to find a purchaser at fifteen dollars per acre for a commission of five per cent., he could not recover unless he found a purchaser who was willing to pay that price, unless the defendants consented to sell, and did sell the property to the purchaser furnished by the plaintiff at a less price. The fact is undisputed that the sale was made at a price less than fifteen dollars per acre. The jury returned a verdict for the plaintiff for the five per cent, commission on the sum for which the land was sold.

The rule of law is not questioned, that a broker, employed to make a sale at a price satisfactory to the seller, is entitled to his commissions when he produces a party who makes the purchase. And it is in general enough, in such case, that the broker produces a party ready to make the purchase at a satisfactory price; and the principal cannot relieve himself from liability by capricious refusal to consummate the sale, or by a voluntary act of his own, disabling him from performance. Moses v. Bierling, 31 N. Y., 462; Kock v. Emmerling, 22 How. (U. S.), 69.

And where the price or other terms of sale are fixed by the seller, in accordance with which the broker undertakes to produce a purchaser, yet if, upon procurement of the broker, a purchaser comes with whom the seller negotiates, and thereupon voluntarily reduces the price of the thing to be sold, or the quantity, or otherwise changes the terms of sale as proposed to the broker, so that a sale is consummated, or terms or condi-, tions offered which the party proposing to buy is ready and [350]*350agrees to accept, tiren and in either such case the broker will be entitled to his commissions at the rate specified in his agreement with his principal. The instruction above referred to was correct in law and properly given. Kock v. Emmerling, supra; Woods v. Stephens, 46 Mo., 555; Lincoln v. McClatchie, 36 Conn., 136. The authorities cited show that wherever the sale is effected through the efforts of the broker, or through information derived from him,-so that he may be said to have been the procuring cause of it, his services are regarded as highly meritorious and beneficial, and the law leans to that construction which will best secure the payment of his commissions, rather than the contrary.

There can be no doubt, in the present case, that the plaintiff was the procuring cause of the sale which was made; but, in order to effect such sale, it seems he was obliged himself to become a part purchaser or joint purchaser of the property with the party whom he brought to the defendants as- a person wishing to buy. He made no concealment, but the defendants were-fully informed of this fact, and the negotiation resulting in the sale to himself .and the party whom he had found thus willing to become joint purchaser with him, was openly carried on with the defendants. The defendants knew all the facts. The written contract of sale was made to the plaintiff and the purchaser procured by him, as joint purchasers. Under these circumstances, a question arises, and, as we think, a very delicate and important one, which is, whether a broker, thus employed to find a purchaser, can in any case himself become the purchaser in whole or in part of the property, and yet claim and recover the commissions agreed to be paid by the seller. The general principle will at once be acknowledged, that a person cannot at the same time be both agent for the seller to make the sale, and purchaser of the property to be sold. The relations' are wholly incompatible with each other, and cannot be combined in the same person. The law will not permit it. Assuming the character of purchaser, the person so acting neces[351]*351sarily abandons that of agent, and can claim nothing in the latter capacity in his negotiations with his former principal. Such is the undoubted general rule. But the question presents itself, whether there may not be exceptions growing out of the peculiar nature of the agency, or certain special or limited agencies not falling within the reason of the rule, and so not within the rule itself. The reason of the rule is very plain. It is, that the interest of the party as purchaser, being adverse to that of his principal, supposing the agency still to continue, might and most naturally and ordinarily would lead to a violation of his duty as agent. If a case can be presented, however, not within the reason of the rule, as of an agency limited to a time anterior to the purchase, or where the agency may be said to have expired, or the duties to have been performed, before the purchase takes place, to such a case it is presumed the rule would be held inapplicable. If, for example, the principal says to the person whose services he wishes to engage, “ I have a farm which I wish to sell, the price of which is $1,000, and for which, if you will find me a purchaser, I will give you -a commission of five per cent, or $50,” and the person addressed thereupon says, “I will find you a purchaser — I will become the purchaser myself on those terms-; ” if upon the proposition so made and accepted, the sale takes place, it would seem that the agent or broker, although himself appearing in the character of purchaser, would be entitled to his commission. The agency being limited and special, confined to the procuring of a piu-chaser at the price specified, would appear to have ended when a purchaser was produced, and before the sale or transfer was made. Pending the transfer and sale no fiduciary relation or agency would exist, but the principal would be acting for himself and on a footing of perfect equality with the purchaser) notwithstanding such purchaser might previously and fora moment of time have been considered as occupying the position of agent for the seller. Sucha case would not be within the reason of the rule, nor the mischief intended to be obviated by [352]*352it, and therefore the rule would seem to be inapplicable to it. The seller, having deliberately and of his own free will fixed the price of the farm and the commission he would pay in case a purchaser was found, could not with reason be heard to complain that the broker had himself become the purchaser; and his acceptance of the offer under such circumstances would altogether likely be construed as an assent on his part to the change of relation, and to the broker becoming the purchaser, within the meaning of the proposition made for one to be found. In such case the only point of any difficulty or doubt would appear to be one of mere fact, and that, whether the seller intended to accept and did accept the offer as within the terms of his agreement to pay the commission.

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Bluebook (online)
32 Wis. 344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-v-mather-wis-1873.