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Blank v. Borden
California Supreme Court
524 P.2d 127 (Cal. 1974)
Erica Borden (defendant) granted Ben Blank (plaintiff) an irrevocable, exclusive right to sell her home for a seven-month period. The parties’ contract stated that if Borden withdrew the property from sale during the seven months, Borden would pay Blank a fee equal to 6 percent of the property’s listing price. Blank diligently worked to sell the property, but at some point during the seven-month period, Borden informed Blank that she no longer wanted to sell the property. Blank sued Borden to recover the 6-percent fee. The trial court ruled in favor of Blank. Borden appealed, arguing that the withdrawal-from-sale clause was void as an unlawful penalty.
Rule of Law
Holding and Reasoning (Sullivan, J.)
Dissent (Burke, J.)
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