Blank v. Borden
California Supreme Court
524 P.2d 127 (1974)
Relevant factsFree
Erica Borden (defendant) gave Ben Blank (plaintiff) an irrevocable, exclusive right to sell her home for seven months, agreeing to pay Blank a 6 percent fee if she withdrew the property from sale during that time. After Blank diligently worked to sell it, Borden decided not to sell after all, and Blank sued for the fee. The trial court ruled for Blank, and Borden appealed, arguing the clause was an unlawful penalty.
IssueFree
Whether a withdrawal-from-sale clause in an exclusive-right-to-sell contract is lawful and enforceable.