A seller sued a broker, alleging that the broker had misrepresented material facts during his sales presentation. The broker responded that the listing contract had only been an oral contract and therefore was not enforceable. A court would find that:

A. the listing broker can be liable for misrepresentation only to the buyers
B. the contract was unenforceable and therefore the seller had no basis for a suit
C. the broker cannot use the statute of frauds as a defense, since that is not at issue
D. the statute of frauds only applies to purchase contracts, not to agency agreements

Answer: C. the broker cannot use the statute of frauds as a defense, since that is not at issue

Business

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