Opinion ID: 2219648
Heading Depth: 2
Heading Rank: 4

Heading: Termination of Realtor's Services As Cancellation

Text: An exclusive listing agreement is a bilateral contract. American Property Services, 256 N.W.2d at 889, n.1. Either party has the power to revoke, but not necessarily the right to do so. In Berven Co. v. Newman, 281 N.W.2d 268, 271 (S.D.1979), this Court found that the exercise of the seller's power to revoke, by making an unassisted sale, terminated the broker's authority but did not dissipate the seller's contractual duty to pay the broker's commission. Weiss's unilateral termination of Kahler's services on April 22, 1992 did not automatically dispel his contractual obligation to pay Kahler's commission. Weiss contends Kahler's silence, his cessation of all work on the file, and Kahler's failure to communicate with Weiss, led Weiss to believe Kahler had agreed to mutually cancel the listing agreement. Cancellation requires mutual assent. Century 21 Associated Realty v. Hoffman, 503 N.W.2d 861, 865 (S.D.1993). Zundel had already submitted a signed sales agreement to Weiss before Weiss sent the termination letter to Kahler. So even if Kahler's silence can be deemed evidence of assent, failure to communicate this vital fact to Kahler invalidates a knowing assent, which imports a decision based upon adequate knowledge of the facts.