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Beazell v. Schrader, 59 Cal.2d 577, 381 P.2d 390, 30 Cal.Rptr. 534

Facts

The broker entered into an oral agreement with the property owner to sell an apartment building, with a commission of 5% of the sales price. The property was sold for $200,000, and the owner signed escrow instructions that stated a commission of $2,500. The broker did not agree to this reduction and sought to recover the originally agreed amount of $10,000, leading to the legal dispute.

The broker entered into an oral agreement with the property owner to sell an apartment building, with a commission of 5% of the sales price.

Issue

Whether the broker could introduce parol evidence to contradict the written escrow instructions that specified a $2,500 commission, in order to establish an oral agreement for a $10,000 commission.

Whether the broker could introduce parol evidence to contradict the written escrow instructions that specified a $2,500 commission, in order to establish an oral agreement for a $10,000 commission.

Rule

Escrow instructions signed by the party to be charged can satisfy the statute of frauds, and a party cannot introduce parol evidence to contradict the terms of a written agreement that is clear and unambiguous.

Escrow instructions signed by the party to be charged can satisfy the statute of frauds, and a party cannot introduce parol evidence to contradict the terms of a written agreement that is clear and unambiguous.

Analysis

The court determined that the escrow instructions provided a clear and definite commission amount, which could not be altered by parol evidence. Allowing the broker to introduce evidence of a different agreement would contradict the terms of the escrow instructions and undermine the purpose of the statute of frauds, which is to prevent fraud and ensure that agreements are documented in writing.

The court determined that the escrow instructions provided a clear and definite commission amount, which could not be altered by parol evidence.

Conclusion

The court affirmed the judgment of dismissal, concluding that the broker could not recover the claimed commission due to the clear terms of the escrow instructions.

The court affirmed the judgment of dismissal, concluding that the broker could not recover the claimed commission due to the clear terms of the escrow instructions.

Who won?

The property owner prevailed in the case because the court upheld the written escrow instructions, which clearly stated the commission amount and barred the introduction of parol evidence to contradict it.

The property owner prevailed in the case because the court upheld the written escrow instructions, which clearly stated the commission amount and barred the introduction of parol evidence to contradict it.

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