Reference no: EM131675548

Question: Scheerer, a licensed real estate agent, and Fisher, a manager of commercial real estate, worked together on past real estate deals and knew each other from their business relationship. Scheerer gave Fisher a tip that some commercial real estate was on the market that Fisher might be interested in purchasing. Fisher made an offer to buy the properties and, with this offer, orally contracted for a 2 percent commission for Scheerer from the seller and another 2 percent commission from himself. Unfortunately, that deal fell apart. Shortly thereafter, however, Fisher formed another company that purchased real estate and bought the very same property. Scheerer was not paid a commission on the deal and sued, contending that he was an agent for Fisher and that an implied contract for his services had been breached. Fisher argued that no formal contract in writing regarding the commission or Scheerer's agency relationship was ever created. Did the authority of the agent in this case need to be in writing to be legally binding? Does the fact that there was no separate, written agency contract between Fisher and Scheerer mean that an agency relationship did not exist?