Sec. 126. Presence Of Broker (P. 131)

Add to footnote 52:

Morrison v. Hale, 96 Atl. (N. H.) 298 (1915).

Add to footnote .58 (p. 132):

Travis v. Bowron. 138 App. Div. 554; 123 N. Y. Suppl. 290 (1910); citing Lloyd v. Matthews, 51 X. Y. 124.

16 Haase v. Ullman, 148 App. Div. 40, 43; 131 N. Y. Suppl. 1050 (1911). 17May v. Tighe, 152 N. W. 23 (1911).

18 Krisch v. Day, 150 App. Div. 154; 134 N. Y. Suppl. 803 (1912). 19Tyler v. Seiler, 86 Misc. 185; 136 N. Y. Suppl. 394 (1912).

Sec. 127a. Notifying Principal That Customer Is Broker's

Client (p. 134)

"The weight of authority, outside of Minnesota, is to the effect that, if a broker, even though he did not have the exclusive agency, was in fact the procuring cause of the purchase, and would otherwise be entitled to commissions, he will not be deprived thereof by the fact that the owner at the time of the sale did not know of his instrumentality in procuring the purchaser."20

But where the broker, by negligence or design, keeps his principal in ignorance of the fact that a proposed purchaser was the customer of the broker, and the principal was thus led to recognize another as the broker who brought about the sale, it may operate to deprive the first broker of any claim for commissions, if such complication is attributable to the fault of the first broker.21

But where a landowner employed a broker to secure a purchaser and agreed that he should have commissions if a sale were made to a certain named person, whether effected between the broker and the customer, or consummated by inducing the customer to negotiate directly with the owner, the broker may recover commissions where the sale was effected in the latter way although he did not notify the owner that he sent the customer to him.22

Sec. 128. Advertising (P. 134)

"The services of the broker must be the direct and proximate cause, not the indirect, accidental or remote cause of bringing the customer to his principal.23 Of course, where a broker advertises property and a customer is procured thereby, that is the direct result of the efforts of the broker."24

But merely including the property in a catalogue of the broker's showing what property the broker has for sale, would not entitle the broker to a commission on a sale to one who had seen the catalogue, unless the broker is also the proximate or procuring cause of the sale.25

20 From Editorial note to Quist v. Goodfellow, 8 L. R. A. (N. S.) 153, case reported 99 Minn. 509; 110 N. W. 65 (1906); Colonial Trust Co. v. Pacific Co.. 158 Fed. 280 (1907); Jungeblut v. Gindra, 134 App. Div. 291; 118 N. Y. Suppl. 942 (1909); Millan v. Porter, 31 Mo. App. 576 (1888). See also 5Sec. 125, 130.

21'Courtney v. Rhodes, 148 App. Div. 799; 133 N. Y. Suppl. 363 (1912). See also Sec. 96, 151.

22 Walker v. Sterry, 146 App. Div. 332; 130 N. Y. Suppl. 801 (1911).

23See Cole v. Kosch, 116 App. Div. 715; 102 N. Y. Suppl. 14; Meyer v. Improved Pro. Holding Co., 137 App. Div. 691; 122 N. Y. Suppl. 296; Boyd v. Improved Prop. Holding Co., 135 App. Div. 623; 120 N. Y. Suppl. 850; Sibbald v. Bethlehem Iron Co., 83 N. Y. 373, 378; 38 Am. Rep. 441.

24Lord v. United States Transportation Co., 143 App. Div. 437, 454, 455; 128 N. Y. Suppl. 451 (1911); citing Kiernan v. Bloom, 91 App. Div. 429; 86 N. Y. Suppl. 899; Sussdorff v. Schmidt, 55 N. Y. 319.

25Way v. Turner, 127 Md. 327; 96 Atl. 676 (1915).

Untrue and misleading advertisements are made a criminal offense in some states, as in New York, where it is provided that, "If any person, firm, corporation or association, or agent or employee thereof, with intent to sell or in any wise dispose of merchandise, real estate, service, or anything offered by such person, firm, corporation or association, or agent or employee thereof, directly or indirectly, to the public for sale or distribution, or with intent to increase the consumption thereof, or to induce the public in any manner to enter into' any obligation relating thereto, or to acquire title thereto, or an interest therein, knowingly makes, publishes, disseminates, circulates, or places before the public, or causes, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in this state, in a newspaper, magazine or other publication, or in the form of a book, notice, circular, pamphlet, letter, handbill, poster, bill, sign, placard, card, label, or tag, or in any other way, an advertisement, announcement or statement of any sort regarding merchandise, service or anything so offered to the public which contains any assertion, representation or statement of fact that is untrue, deceptive or misleading, or that amounts to an offer to sell, barter or exchange real estate, by means of prizes, rewards, distinctions, or puzzle methods, such person, corporation or association, or the members of such firm, or the agent of such person, corporation, association or firm, shall be guilty of a misdemeanor, punishable by a fine of not less than twenty-five dollars nor more than one thousand dollars, or by imprisonment for not more than one year, or by both such fine and imprisonment."26