TheHagues owned a tract of land that they decided to sell. They signed alisting agreement with Harvey Hilgendorf, a licensed real estate broker,which gave Hilgendorf the right to list the property for 12 months.According to the agreement, Hilgendorf would be paid a 6% commission if abona fide buyer was found during the listing period. Five months later,the Hagues sent Hilgendorf a letter terminating the listing agreement,although Hilgendorf did not agree to the termination. One month later,Hilgendorf presented an offer to the Hagues from a buyer willing topurchase the property at full value. The Hagues ignored the offer andsold it themselves. Hilgendorf sued the Hagues for breach of the agencyagreement.
Did the Hagues act ethically? How should the lawsuit be decided?