Legal Question in Real Estate Law in California
Reference to another agreement in a contract
We have a one year contract with a management company to manage a rental property, signed 6 months ago. In the agreement it says ''In the event the premises are sold by Owner during the period of this agreement, Agent shall have exclusive rights of representation in the sale as stated in a specific agreement to be negotiated separately.'' It was never negotiated. Are we obligated to have them represnt us in the sale?
2 Answers from Attorneys
Re: Reference to another agreement in a contract
It depends on what the contract says. However, an agreement to agree in the future is unenforceable. Thus, if the terms of the exclusive representation deal are not expressed in the management agreement, that provision is likely unenforceable. At any rate, I guess you could always negotiate a no fee respresentation.
Re: Reference to another agreement in a contract
Whil it may be true in a strict sense that an agreement to agree is not enforceable, I'd say that an agreement to agree requires the parties to make a good-faith effort to come to agreement, and that the original, existing contract is breached if one party ignores that duty or participates in attempts to agree in only a half-hearted, bad-faith way.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
