Opinion ID: 2548358
Heading Depth: 2
Heading Rank: 3

Heading: due and payable clause

Text: ¶10 The next issue American raises is whether the phrase [a]ll commissions shall be due and payable at closing is ambiguous, thereby leading to the conclusion that this clause may represent a condition precedent to payment of the commission. This question is a matter of contract interpretation. When interpreting a contract, a court first looks to the contract's four corners to determine the parties' intentions, which are controlling. If the language within the four corners of the contract is unambiguous . . . a court determines the parties' intentions from the plain meaning of the contractual language as a matter of law. Bakowski v. Mountain States Steel, Inc., 2002 UT 62, ¶ 16, 52 P.3d 1179 (internal citations omitted). A contract provision is ambiguous if it is capable of more than one reasonable interpretation because of `uncertain meanings of terms, missing terms, or other facial deficiencies.' Winegar v. Froerer Corp., 813 P.2d 104, 108 (Utah 1991) (quoting Faulkner v. Farnsworth, 665 P.2d 1292, 1293 (Utah 1983)). When interpreting a contract, a court is to consider each provision in relation to all of the others, with a view toward giving effect to all and ignoring none. Green River Canal Co. v. Thayn, 2003 UT 50, ¶ 17, 84 P.3d 1134 (internal quotations omitted). ¶11 Here, the due and payable clause is unambiguous, so we review the parties' intentions by examining the plain language of the contract. The plain language of the contract indicates that the due and payable clause is merely a timing clause. If instead we give the clause the construction urged by American, the provision for earning commission would be meaningless. American's promise that if [Fairbourn] . . . procures, or presents an offer . . . from [Rochelle] . . . I agree to pay a commission would have no meaning because the due and payable clause would completely control the earning of commission. We cannot ignore American's promise to pay commission upon procurement of a buyer because we must give effect to each contractural provision. See id. Thus, the only tenable conclusion is that the due and payable clause defines the time for paying commission rather than defining a prerequisite to earning commission. ¶12 Fairbourn procured Rochelle as a buyer of American's property even though a closing was not reached. Therefore, Fairbourn is entitled to its commission pursuant to the listing agreement.