Contracts between a broker and two parties

[wbkski]

What is the name of your state? Utah
Question: A person(broker) brings two parties together for the sale of a business through the use of a contract. The contract creates a financial interest in the new ownership. They construct a contract that states "you don't have to worry about paying me a "sale" commission, however, you must sell my products in order for me to help you buy the business". The sale goes through and now the new owner is selling the brokers products. Problem: The brokers products have not met the state requirments which allows them to be sold. The state issues "cease and dissist" on the brokers products. Question: Is the contract that the broker created for the sale still binding?

 

[HomeGuru]

What is the name of your state? Utah
Question: A person(broker) brings two parties together for the sale of a business through the use of a contract. The contract creates a financial interest in the new ownership. They construct a contract that states "you don't have to worry about paying me a "sale" commission, however, you must sell my products in order for me to help you buy the business". The sale goes through and now the new owner is selling the brokers products. Problem: The brokers products have not met the state requirments which allows them to be sold. The state issues "cease and dissist" on the brokers products. Question: Is the contract that the broker created for the sale still binding?

**A: yes it is binding but currently unenforceable until such time as the products meet state requirements and approvals to market the products.