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Question #1: Is Premier Building relieved of its contractual duties if it assigned the contract to Cobblestone? Why or why not?
Question#2: Given that Sunset Gold performed its obligations under the listing agreement, did Cobblestone behave unethically in refusing to pay Sunset Gold's commission? Why or why not?
Scenario: Premier Building & Development, Inc., entered a listing agreement giving Sunset Gold Realty, LLC, the exclusive right to ?nd a tenant for some commercial property. The terms of the listing agreement stated that it was binding on both par-ties and "their . . . assigns." Premier Building did not own the property at the time, but had an option to purchase it. To secure ?nancing for the project, Premier Building established a new company called Cobblestone Associates. Premier Building then bought the property and conveyed it to Cobblestone. Meanwhile, Sunset Gold found a tenant for the property, and Cobblestone became the landlord. Cobblestone acknowledged its obligation to pay Sunset Gold for ?nding a tenant, but it later refused to pay Sunset Gold's commission. Sunset Gold then sued Premier Building and Cobblestone for breach of the listing agreement.
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