Jasper County Democrat, Volume 6, Number 31, Rensselaer, Jasper County, 7 November 1903 — VERBAL CONTRACT NOT BINDING. [ARTICLE]

VERBAL CONTRACT NOT BINDING.

The appellate court last Friday reversed the case of Barney Clark of Goodland vs. Wm. T. Beahler, now of Bloomington, 111., in which Clark recovered judgment in the Jasper Circuit court for $240 for commission for selling Beahler’a 240 acre farm inCarpenter tp. Beahler, it seems, had had some talk with Clark regarding the selling of said farm and told him that he would pay him $1 per acre if he (Clark) brought him a buyer. Later Beahler talked with a prospective purchaser and the man promised to come out 'and look at the farm. Some days later he drove to Goodland and there saw Clark and the latter found he was going out to look at the Beahler farm and told the man that he had it for sale and if he bought he (Clark) would divide the commission with him. Clark rode out to the farm with the man and staid about the house, it is alleged, while the man went to the field where Beahler was and made a deal for the farm. Clark later brought suit for his commission, which Beahler had refused to pay because, as he claimed, he had made the sale without Clark’s services and had talked with the purchaser regarding same before Clark had even seen him at all. While olaiming that he did not owe Clark a dollar legally or morally, Beahler offered to compromise as a matter of economy,and offeredsso to settle the case. This was refused, andfrom the rendition of judgment against him in the lower court Beahler appealed, with the result that he is freed entirely from paying one penny. The court held: Acts 1903, page 104, providing that "no contract for the payment of * * * a commission or reward for finding * ♦ * a purchaser for the real estate of another shall not be valid unless * * * in writing, signed,” forbid the recovery by a real estate agent of the reasonable value of his services, by a suit on the quantum meruit, where he found a purchaser under a verbal contract for compensation. The effect of the statute is to forbid a recovery except upon a written contract such as the statute describes. It will be seen from this that no commission whatever can be collected by an agent who sells real estate or finds a purchaser for same, unless the contract is in writing. This decision is the first to be handed down on the 1901 statute-and is of interest to farmers and others who employ agents to find them a purchaser, as well as to the agents themselves. Under the provisions of the statute cited, no agent can step in and claim a commission on any sale, even though he may bavd been instrumental in or did actually bring about the sale, unles-* he has a written contract showing such agency. Verbal promises are not binding.