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The Danger of "Exclusive" Contracts

Such contracts can force a church to sign on a loan it doesn't want.

Allstar Consulting Group v. Trinity Church & Christian Center, 2007 WL 120046 (Tenn. App. 2007)

Background. A finance broker and church entered into an agreement under which the broker was to assist the church in obtaining a loan, and the church would pay the broker a 3% fee for this service. The agreement was a form document that left certain contractual terms blank for the parties to complete. In one provision, the parties were given the option of hiring the broker on an exclusive or nonexclusive basis, and boxes were placed next to each option for the parties to mark their choice. The agreement had an "x" in the box beside "exclusive," indicating that the broker had the "exclusive" right to arrange a loan for the church for a period of ninety (90) days under the contract. The broker obtained financing suitable for the church's needs with a bank, and the church's senior pastor signed and ...

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Posted:
  • May 1, 2007

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