Cases - EP Nelson & Co v Rolfe

Record details

Name

EP Nelson & Co v Rolfe

Date

[1950]

Citation

1 KB 139

Keywords

Estate agency - termination

Summary

The defendant vendor instructed various agents, including the plaintiffs, to find a buyer for her property. The terms of the agreement with the plaintiffs provided for the payment of commission in the event of the plaintiffs introducing to her a person ready, willing and able to purchase the property for £2,500. One of the other firms of estate agents introduced a prospective purchaser to whom the vendor gave an option to purchase within 24 hours. The plaintiffs then introduced a person ready, willing and able to purchase the property, but the vendor informed this person that the house was sold, that she had given an option on it, and that a deposit had been paid. Subsequently the house was sold to the person to whom the option had been granted.

The Court of Appeal held that there is an implied term that the estate agency is terminated in the following events, so long as they take place before the agent fulfils their contract by finding a purchaser:

• when the agent's authority is withdrawn;
• when the property is sold; or
• when a binding contract of sale is made.