What is the effect of an agreement where an agent is required to pay a commission to a potential buyer of a property if the property is purchased directly or indirectly?
Saskatchewan, Canada
The following excerpt is from H. J. Quinn Company v. Hamilton, 1950 CanLII 190 (SK CA):
He again expressly approved the judgment in Herbert v. Bell (1912) 1912 CanLII 212 (SK QB), 3 WWR 608, 6 Sask LR 10, 22 WLR 884, where Newlands, J. said: “The agreement, in my opinion, means that the defendant is to pay a commission if the plaintiffs bring the property, directly or indirectly, to the attention of any person who becomes a purchaser from the fact of their having so brought it to his attention. In this case the man to whose attention they brought the business gave up all idea of buying same and the matter was closed. He took it up again and bought through the efforts of another agent and the plaintiffs had nothing to do with his becoming a purchaser.”
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