This section is from the book "The Law Of Land Contracts", by Asher L. Cornelius. Also available from Amazon: Michigan Law Of Land Contracts.
An
Owner of property placing it in the hands of a real estate broker for sale may give an option which will be binding as such.19 Generally, however, the employment of a broker to sell real estate constitutes a contract of agency,20 thus differing
17. Test as to Character of the Instrument.
Pangburn v. Sifford, 216 Mich. 153-162. In this case there was a controversy as to whether or not the receipts in question show a contract or an option. "It is true there is more or less language made use of in the receipt which is more suitable to a contract than to an option, but the real test by which it must be determined is whether both parties are bound by the agreement. Whether there is mutuality of contract. If defendants were obliged to sell and plaintiff to buy, then it is a contract. The receipt was not signed by plaintiff. Therefore, we conclude that he could purchase the premises or not, as he saw fit. This makes the agreement a unilateral option contract. This is made plain by the recent case of Tattan v. Bryant, 198 Mich. 515." Winders v. Keenan, 161 N. Car. 628, 77 S. E. 687; Darr v. Mummert, 57 Neb.
378, 77 N. W. 767; In re Allen, 183 Fed. 172.
18. Solomon v. Shewitz, 185 Mich. 620, 152 N. W. 196; Tattan v. Bryant, 198 Mich. 515, 165 N. W. 778; Cavada v. Diaz, 37 Philippine Reps. 982; Berry v. Humphries, 76 W. Va. 668, 86 S. E. 568; Hazelton v. Le Due, 10 App. Cases D. C. 379; Hamberger v. Thomas, Texas Civil Appeals, 118 S. E. 770; Benson v. Shotwell, 87 Cal. 49, 25 Pac. 249; Golden v. Cornett, 154 Ky. 438, 157 S. W. 1076.
19. Kellow v. Jory, 141 Pa. St. 144, 21 Atl. 522; Reimer v. Rice, 88 Wise. 16, 59 N. W. 450; Russell v. Andrae, 79 Wise. 108, 48 N. W. 117; Levy v. Roth, 39 N. Y. Supp. 1057, 17 Misc. Reps. N. Y. 40; Hunkabee v. Shepard, 75 Ala. 342; Strang v. Gosse, 110 Mich. 153, 67 N. W. 1108.
20. Tate v. Aitken, 5 Calif. App. 505, 90 Pac. 836; Chesborogh v. Vizard Investment Co., 156 Ky. 149, materially from an option which confers the privilege of bringing into existence relation of vendee and vendor between optionee and optionor.
 
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