Memorandum: Breach of the Real Estate Contract

RUNNING HEADER: Real Estate Contract

Memorandum: Breach of the Real Estate Contract

Kaplan University: PA300 Real Estate Law

Professor

February 18, 2011

To: Barbara Buyer, Client

From: Attorney

Date: 19 February 2012

Subject: Breach of Contract

This memorandum is delivered to you to identify and analyse events which resulted in a breach of the contract agreement. The ethical issue in the scenario occurs when a dual representation of Sam Salesperson accepts a representation of both the grantor and the grantee. Barbara Buyer showed willingness to make the payment upon being granted a two day extension; however, Salesperson failed to submit the documentation to seller which is necessary to grant the request by Buyer. Day later, after Salesperson sold the property at the higher price to another purchaser, Buyer was notified that the contract between the Buyer and seller have been terminated. The execution of duty by Salesperson as dual agent between Buyer and seller indicates to be highly unethical since the incident reveals conflict of interest in favour to only the seller. Salesperson failed to communicate to Buyer about the new development of agreement involving the third party. It was also very unprofessional for Salesperson to disregard the urgency of principal (Buyer) in attempt to obtain the written document for a detailed evidence of the contract.

This scenario calls for action to be taken upon Salesperson because he had failed to provide duties to Buyer. Those duties are: a duty to follow the instructions of the principal; “a duty to exercise reasonable care and skill in the performance of the agent’s duties; a duty to fully disclose all matters that the agent becomes aware of relating to the agency relationship; and a duty to account for any money belonging to the principal which comes into the agent’s possession” (Hinkel, 2008, p. 52). Not only notification of termination of the...