Source: All England Reporter
Publisher Citation: [2008] ALL ER (D) 281 (Jan)
Neutral Citation: [2008] EWCA Civ 26
Court: Court of Appeal, Civil Division

Sir Anthony Clarke MR, Longmore and Richards LJJ

Representation Hugh Sims (instructed by Michelmores LLP) for the claimant.
  Mark Warwick (instructed by Addleshaw Goddard LLP) for the defendant.
Judgment Dates: 31 January 2008


Agent - Commission - Effective cause - Agent for purchase of property - Whether term to be implied in contract that agent having to be effective cause of purchase in order to earn commission - Whether agent effective cause of purchase - Whether clear implication that implied term to be excluded.

The Case

The present day rationale for the implication of a term that an agent should be at least an effective cause of a transaction in order to earn his commission was, mainly, the need for the client to avoid the risk of having to pay two sets of commission. Whilst there were undoubtedly similarities between the normal estate agent's contract and purchasing agency contracts, there were also likely to be differences which might well be reflected in the terms of the purchasing agency contract. If they were so reflected it might well be that a court would conclude that the term, normally to be implied into a selling agency contract, would not be so readily implied into a purchasing agency contract.

Practice Areas

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