Terry Barr Sales Agency, Inc. v. All-Lock Company, Inc.

Brief Fact Summary.

Terry Barr Sales Agency, Inc. (Barr) sued All-Lock Company, Inc. (All-Lock) when All-Lock terminated an oral agreement and refused to pay post-termination commissions after 90 days.

Synopsis of Rule of Law.

A court should consider employment contracts and the intention of the parties to determine whether a party is entitled to sales commissions made by anyone other than the agent.

Facts.

All-Lock Company, Inc. (All-Lock) entered into an oral agreement with Terry Barr Sales Agency, Inc. (Barr) where Bar would sell All-Lock’s products to automobile manufacturers in exchange for commission. 21 years later, All-Lock terminated the oral agreement with Barr and refused to pay post-termination commissions after 90 days and Barr sued for breach of contract.

Issue.

Whether a court should consider employment contracts and the intention of the parties to determine whether a party is entitled to sales commissions made by anyone other than the agent?

Held.

Yes. The district court’s judgment is reversed. Barr’s claims are reinstated because Barr and All-Lock did not expressly agree to and the facts do not stipulate whether Barr would be entitled to post-termination commissions.

Discussion.

An agent is entitled to sales commissions for any sale where the agent was the cause of purchase.