Cases - AA Dickson & Co v O'Leary

Record details

Name

AA Dickson & Co v O'Leary

Date

[1980]

Citation

1 EGLR 25

Keywords

Estate agency - commission

Summary

The vendor put his house in the hands of the plaintiff agents and other agents.

Negotiations ensued with 2 prospective purchasers - one through the plaintiff and one through other agents. Eventually the person introduced by the plaintiff signed an unconditional contract and returned it to her solicitors. On the following day the solicitors told the vendor's solicitors that they were ready to exchange, but were informed that contracts had been exchanged with another purchaser the previous day. The plaintiff claimed that a person ready, willing and able to purchase had been introduced as she had signed unconditional contracts.

The Court of Appeal held (following dicta in EP Nelson & Co v Rolfe) that there was an implied term that commission would not be payable if the property had already been sold, or a binding contract had already been entered into, before the person ready, willing and able to purchase had been introduced. Exactly when the introduction of a person ready, willing and able occurs is not clear, but Lord Denning indicated it would be when the signed contract reached the solicitors, though Sir David Cairns was of the view that it is when the contract is despatched to the other side. But see Savills Land & Property Ltd v Kibble on this point.