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Question
Anne Arbor operates the AA Real Estate Agency which specializes in finding buyers for commercial properties. Anne was approached one day by a prospective client who had three properties in and adjoining Ann Arbor, Michigan, which he wished to sell. The client indicated the prices he wished to receive for these properties as follows: Property Price Commission Yost $ 25,000 $1,000 Osterbahn $ 50,000 $2,000 Bechshembler $100,000 $4,000 Anne would receive a commission of 4% on any of the properties she was able to sell. The client laid down the following conditions for an exclusive listing: "Anne, you have to sell the Yost property first. If you can't sell it within a month, the entire deal is off - no commission and no chance to sell the other two properties. If you sell the Yost property within a month, then I'll give you the commission for Yost and the option of (a) stopping at this point or (b) trying to sell either the Osterbahn or Bechshembler property next under the same conditions (i.e., sell within a month or no commission on the second property and no chance to sell the third property). If you succeed in selling the first two.
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