Chretian

Chretian v. Donald L. Bren Co.

Good Law
151 Cal. App. 3d 385·198 Cal. Rptr. 523·1984 Cal. App. LEXIS 1558
Court of Appeal of CaliforniaJanuary 27, 1984Civ. 28402California1,182 words

Opinion

Opinion

Wiener, J.

The sole question is whether the trial court ruled correctly in deciding a provision for compensation in the employment agreement between defendant Donald L. Bren Company (Bren), a real estate developer, and its salesperson plaintiff Leonard Chretian was unconscionable and therefore unenforceable. As we shall explain, we conclude the provision is not adhesive, oppressive or substantively unreasonable and not unconscionable. Accordingly, we modify the $18,938.82 judgment in favor of Chretian to $2,000 and, as modified, affirm the judgment.

Bren sells homes to the public through commissioned salespersons. Bren’s contract with its salespersons, including Chretian, provides for two separate commissions. The first commission of .65 percent of the sales price of the house is earned “for obtaining a fully executed purchase and sales agreement which subsequently closes escrow.” (Italics added.) The second commission of .35 percent of the sales price of the house is “for servicing the sale transaction through successful close of escrow.” (Italics added.) The contract further states that upon termination of his employment the salesperson is entitled to both commissions for escrows…

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