Molly Morrow was a real estate agent working for Commercial Properties. She was approached by Shane Jacobs to find a commercial building in downtown Halifax. She did some investigating and found a suitable property owned by Haldane Properties (HP). She approached the owners about selling, and they agreed to pay a commission of 2 percent if she acted as their agent in the sale of the building. After considerable negotiations, the sale was concluded for $6 million. Unknown to HP, Mollie agreed to pay half of her commission to Shane. When HP learned about this, it refused to pay the commission. Mollie argued that HP had received what it wanted out of the deal. She had made a sacrifice by giving up part of her commission and her sacrifice ensured that the deal went through. In short, her actions helped, not harmed, HP.
You are the judge in this case. Is Molly entitled to her commission? Explain how you are going to make your decision.
1. Ocean City Realty Ltd v. A & M Holdings Ltd., 1987 BCCA
2. Hodgkinson v. Simms, 1994 SCC
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