Cases - Fullwood v Hurley

Record details

Name
Fullwood v Hurley
Date
[1928]
Citation
1 KB 498
Keywords
Estate agency
Summary

The plaintiff was engaged as an agent to sell the Hunt Hotel, Leighton Buzzard. The defendant, a prospective purchaser, called at the plaintiff's office and asked for particulars of hotel businesses for sale. The plaintiff sent a letter to the defendant enclosing particulars of hotels, including the Hunt Hotel, and concluding with the words:

'We shall be glad to know your decision in due course, and if business is done we shall act for you at the usual brokerage.'

The defendant purchased the hotel, and the plaintiff obtained his commission from the vendor. He also sought commission from the defendant. The defendant refused to pay the commission as, at the time, the plaintiff was acting for the vendor.

The Court of Appeal held that no commission was due to the plaintiff as there was a conflict of interest. It would be inconsistent with the duty to the vendor if the agent refused to give particulars of the hotel to a prospective purchaser unless he agreed to pay commission. If 2 commissions are to be received, it must be on the basis that both principals assent with full knowledge of the facts.