Cases - Christie Owen & Davies v Rapacioli

Record details

Name

Christie Owen & Davies v Rapacioli

Date

[1974]

Citation

1 QB 781

Keywords

Estate agency - commission

Summary

The defendant instructed estate agents to sell the lease and goodwill of a restaurant, and to quote a price of £20,000. The agents would be entitled to commission if they effected 'an introduction either directly or indirectly of a person ready able and willing to purchase'. A prospective purchaser offered £17,000 which the defendant agreed to accept. After a draft contract was approved by the prospective purchaser's solicitors, a contract was engrossed and signed by him and sent on to the defendant's solicitors together with the balance of the contract deposit of £1,850. The defendant then received a better offer and gazumped the prospective purchaser. The estate agents claimed their commission.

Reviewing the authorities, the Court of Appeal held that commission was due when the person introduced by the agent makes a firm offer on terms acceptable to the vendor. This was the case. A distinction was drawn between a case such as this and cases where the prospective purchaser makes a conditional or subject to contract offer, or where a person introduced withdraws. The result is that, under an agreement such as this, a vendor may be liable to pay more than one commission.