In a brokerage agreement where the broker agrees to sell a property, can a buyer sue for specific performance if the seller refuses?

Prepare for the Multistate Bar Examination (MBE) with our engaging quiz. Featuring flashcards and multiple choice questions, each with hints and explanations. Get ready to excel!

In a brokerage agreement, the contract exists between the seller and the broker, not directly between the buyer and the seller. The purpose of the brokerage agreement is for the broker to act as an intermediary to facilitate the sale of the property. Specific performance is a remedy that typically applies in the context of enforceable contracts between parties who have mutual obligations.

Since the buyer is not a party to the brokerage agreement, they do not have the legal standing to enforce that contract or seek specific performance regarding it. Specific performance would only be available if there was a direct contract between the buyer and the seller that obligates the seller to perform by completing the sale. In this case, the buyer’s obligations or rights arise from a separate transaction that directly involves the seller, not the brokerage agreement itself.

The other options suggest scenarios where the buyer might have rights to seek specific performance based on agreements that either do not exist within the broker context or would not create a binding obligation for the seller. Such suggestions overlook the fundamental principle that only parties to a contract can compel performance or seek remedies under that contract. Hence, without a buyer-seller contract, the option reflecting that the contract is between the broker and the seller, thus leaving the buyer without grounds to sue for specific

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy