Opinion ID: 2059116
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Heading: The Breach of Contract Theory

Text: We first address the breach of contract theory, for where questions of a breach of an agency contract and negligence arise, the better analysis initially focuses on the nature of the contract and the breach of that contract. See Bogley v. Middleton Tavern, Inc., 42 Md.App. 314, 324, 400 A.2d 15, 21 (Ct.Spec.App.1979) rev'd on other grounds, 288 Md. 645, 421 A.2d 571 (1980). It is fundamental that the relationship between an agent and his principal arises from a contractual agreement and that his contract defines the scope and extent of the agency. Investment Co. Institute v. Camp, 274 F.Supp. 624, 639 (1967), rev'd on other grounds sub nom. National Association of Securities Dealers v. SEC, 163 U.S.App.D.C. 241, 420 F.2d 83 (1969), rev'd, 401 U.S. 617, 91 S.Ct. 1091, 28 L.Ed.2d 367 (1971); Brown v. Coates, 102 U.S.App.D.C. 300, 303, 253 F.2d 36, 39 (1958). In performing an agency contract, an agent is bound to use reasonable care and skill. Yelen v. Banks, D.C.Mun.App., 146 A.2d 569, 571 (1959). See also Consolidated Sun Ray, Inc. v. Lea, 401 F.2d 650, 656 (3d Cir. 1968), cert. denied, 393 U.S. 1050, 89 S.Ct. 688, 21 L.Ed.2d 692 (1969). Given the importance of an agency contract in determining the extent of an agent's obligations, we cannot agree with appellee's assertion that any dispute as to the form of the contract is irrelevant to our determination of the appropriateness of summary judgment. In the absence of ambiguity, a written contract duly signed and executed speaks for itself and is binding on the parties. Gagnon v. Wright, D.C.App., 200 A.2d 196, 198 (1964). See generally J. Calamari and J. Perillo, Law of Contracts § 3-2, at 99 (1977) (existence of an integrated written contract precludes the use of parol evidence to vary or contradict its terms). A written contract would set out the relationship of the parties as well as the obligations of Boss & Phelps with respect to the appellants' property and possibly obviate the need for a jury determination of Boss & Phelps' contractual obligations. A jury reasonably could find that Mr. Morris did reduce the agreement to writing. Two witnesses testified to this in their depositions. Should a jury find that there was a written contract, the failure of Boss & Phelps to produce the contract would affect the credibility of Mr. Morris, who would very likely be the principal witness of Boss & Phelps at trial. If a written contract is not produced at trial whether or not the jury finds that such a written contract did exist, the jury must determine the intent of the parties with respect to the real estate management contract by analyzing the acts and conduct of the parties. See Richardson v. J. C. Flood Co., D.C.App., 190 A.2d 259 (1963). Cf. 1901 Wyoming Avenue Co-op Ass'n v. Lee, supra 345 A.2d at 461-62 (where confronted with an ambiguous integrated agreement, court looked to surrounding circumstances). The salient concern for this court then becomes whether any possible inference can be drawn from the conduct of the parties that would suggest that Boss & Phelps had an obligation to notify the Glekases and Mr. Bogdanoff of the approaching expiration dates, to renew the fire insurance policy, or to see that Mr. Bogdanoff renewed the policy. Viewing the disputed and undisputed facts in the light most favorable to the appellants, we are unable to say that a reasonable jury could not infer from the conduct of the parties an obligation to notify the Glekases and/or the insurance broker of approaching expiration dates or an obligation to see that the fire insurance policy was renewed. A reasonable jury could infer that Boss & Phelps had some obligation with respect to the fire insurance policy and that Boss & Phelps did not satisfy its obligation. Two facts militate toward a finding of an obligation to notify Mr. Glekas, all of the Glekases, and/or Mr. Bogdanoff. First, Boss & Phelps concedes that it kept a calendar noting the expiration date of the fire insurance and that it had a copy of the Glekases' fire insurance policy. Secondly, Mr. Morris stated that he contacted Helen Glekas and Mr. Bogdanoff prior to the expiration of the Glekases' fire insurance policy. Moreover, a reasonable jury could reasonably find that such an obligation to notify had not been satisfied by virtue of the fact that Mr. Glekas was not directly notified; that there was no written notification sent to Mr. Glekas or any of the other Glekases; that only Helen Glekas, of all the Glekases received any kind of notification; and that Mr. Bogdanoff testified that he did not receive any notification by Mr. Morris prior to the expiration of the policy. A jury also could reasonably infer that Boss & Phelps had an obligation to renew or to see that Mr. Bogdanoff renewed the policy. The fact that Boss & Phelps kept a calendar noting the expiration date and a copy of the policy is relevant on this point. Any admissible testimony as to the prior conduct of the parties with respect to the renewal of fire insurance policies, as well as the fact of the existence of a separate agreement with Mr. Bogdanoff to renew the policy, are important facts that may be favorable to Boss & Phelps. These facts should be considered and weighed by the jury along with the other evidence.