Cases - Boots v E Christopher & Co

Record details

Name

Boots v E Christopher & Co

Date

[1952]

Citation

1 KB 89

Keywords

Estate agency - commission

Summary

The plaintiff vendor instructed the defendant agents to find a buyer for his sub-post office and shop. The agents sent a letter to the plaintiff stating:

'no commission is payable until a person who is able and willing to purchase upon terms agreed to by you has been introduced by us'.

In a second letter, the agents stated that 'commission would be at the rate of 5% of the total purchase price obtained'. The Court of Appeal found that both letters formed the agency contract.

The agents found a person who signed a legally binding contract and paid a deposit to them as stakeholders. This person, despite being able to complete the purchase, decided to repudiate the contract and instructed the agents to forward the deposit to the purchaser. The agents claimed to be entitled to deduct their commission from the deposit, so the vendor sued for the return of the deposit.

The Court of Appeal held that, as the commission was expressed to come out of the 'purchase price', and the person introduced was not willing to purchase at the proper time, no commission was payable unless it could be established that the plaintiff, by a wrongful act, had deprived the agents of the commission. The court rejected the agents' claim that the plaintiff had a duty to bring an action for specific performance or damages; so no commission was due.