Two home owners instructed the plaintiff agents to ‘find a person ready, willing and able’ to purchase their property and agreed to pay the agents a commission upon them introducing such a person. The agents found a prospective purchaser but he withdrew before an enforceable agreement for sale had been made. The agents nevertheless claimed they were entitled to their full commission.
Held: The Court agreed with the trial judge that they were not.
Denning LJ explained that when an owner puts his house into the hands of an estate agent, the ordinary understanding is that the agent is only entitled to a commission if he succeeds in effecting a sale; but if he does not, he is entitled to nothing. A little later, he said this about the relationship between owner and agent: ‘All the familiar expressions ‘please find a purchaser’, ‘find someone to buy my house’, ‘sell my house for me’, and so on mean the same thing: they mean that the agent is employed on the usual terms; but none of them gives any precise guide as to what is the event on which the agent is to be paid. The common understanding of men is, however, that the agent’s commission is payable out of the purchase price. The services rendered by the agent may be merely an introduction. He is entitled to commission if his introduction is the efficient cause in bringing about the sale: Nightingale v Parsons [1914] 2 KB 621. But that does not mean that commission is payable at the moment of the introduction: it is only payable on completion of the sale. The house owner wants to find a man who will actually buy his house and pay for it.’
[1950] 2 QB 277
England and Wales
Citing:
Cited – Nightingale and others v Parsons CA 9-Mar-1914
In 1908 the plaintiff, who was a house agent, was employed by the defendant to find a tenant for a house at a rent of 120 pounds a year or a purchaser for 2500 pounds. The plaintiff found a tenant who took the house for a term of three years with . .
Cited by:
Cited – Wells v Devani SC 13-Feb-2019
Mr W was selling apartments in a block of flats. Mr D, an estate agent, sought commission. W argued that D had not had signed his terms, and that therefore no contract existed. The court considered whether a contract had come into being when a major . .
Lists of cited by and citing cases may be incomplete.
Contract
Updated: 10 January 2022; Ref: scu.670953