Centex Corporation, Petitioner v. John Dalton, Respondent

Summary

The Texas Supreme Court reversed the Court of Appeals and held that Centex Corporation's contract with John Dalton was unenforceable because a governmental regulation prohibited payment of finder's fees, rendering performance illegal and discharging Centex's duty. The Court affirmed that the contract never accrued a right to enforce due to the condition precedent and declined to award Dalton liquidated damages. Justice Mauzzy dissented, arguing that Dalton should be allowed to recover under quantum meruit.