Hopewell Heights Development Co. v. Kagay-Marshall Realty Co.
Hopewell Heights Development Co. v. Kagay-Marshall Realty Co.
Opinion of the Court
after making the foregoing statement, delivered the following opinion of the court.
In the view we take of this case we shall consider it upon the assumption that the rights of neither party under the contract were prejudiced by the payments made by the vendor to the agent, which were in excess of the 20% commission admittedly due the latter. And—
1. The sole question before us is whether the proper construction of the contract itself is that given to it by the learned judge of the court below, namely, “that twenty per cent, of the list price and one-half of the overage together constitute the commissions provided for in the contract.”
The material facts and what is meant by “list price,” or “list prices” and by “overage,” as such terms are used in the record in this case, all appear from the statement preceding this opinion.
That part of the contract of which the construction is drawn in question before us is contained in the fifth clause thereof, and is as follows:
“It is agreed that the” * * (agent aforesaid), “shall receive a commission of 20% on the above prices” (referring, to the list prices aforesaid), “and one-half of the overage on the prices which may be placed upon said lots” (referring to the actual selling prices, aforesaid) “over and above the prices mentioned herewith” (referring to the said list prices), “said commissions to be paid three-fourths of the collections received on sales until they are paid in full * *”
There is a manifest typographical error in the omission of the words “out of” or words of similar meaning, between the words “paid” and “three-fourths” in the clause last quoted. There is no controversy in the case as to that.
The position of the vendor is, in substance, that the words “said commissions to be paid (out of) three-fourths of the collections received on sales until they are paid in
. These authorities are applicable and controlling in favor of the vendor, if such was the nature of the contract. But • we do not so construe the contract.
We must construe the language which the parties use in the contract. That language, as used in the fifth clause of the contract seems plainly to fix all of the compensation to be paid the agent by the prices at which the agent may and does sell the lots. The agent is to receive a minimum compensation of “a commission” (in the singular number), “of 20 %” on the total of the list prices of the lots sold, and, in addition thereto, one-half of the difference between the
We are of opinion, therefore, that the contract is not silent as to when the “overage” compensation to the agent is to be paid, but is a complete contract on that subject, as well as on the subject of the 20% commission provided for therein. We think that the contract on the face of it provides how and when the whole compensation to the agent is to be paid, namely, out of three-fourths of all collections of purchase money made by the vendor.
Hence, we find no error in the judgment under review, and it will be affirmed.
Affirmed.
Reference
- Full Case Name
- Hopewell Heights Development Company, Inc. v. Kagay-Marshall Realty Company
- Status
- Published
- Syllabus
- Real Estate Brokers—Compensation of Broker—Constrwtion of Contract—Case at Bar.—The owner of a tract of land subdivided it into lots and gave a real estate broker an, exclusive agency for six months for the sale of the lots. The contract provided that the broker should receive twenty per cent, on the list prices and one-half of the overage on the prices which might be placed upon said lots (referring to the actual selling prices) over1 and above the list prices, said commissions to be paid out of three-fourths of the collections received on sales until they are paid in full. The difference between the list prices and the actual selling prices is what was meant by the word “overage.” Held: That the twenty per cent, of the list price and one-half of the overage together constitute the commissions provided for in the contract, and these commissions were to be paid in full out of three-fourths of all collections of purchase money made by the owner, as the contract is not silent as to when the “overage” compensation to the agent was to be paid.