Cases - Harrods Ltd v Lemon

Record details

Name

Harrods Ltd v Lemon

Date

[1931]

Citation

2 KB 157

Keywords

Estate agency

Summary

The defendant vendor engaged Harrods as estate agents. The prospective purchaser employed a different department of Harrods to carry out a survey. The departments were in different buildings, and neither was aware that the other was acting for the other side. The survey department informed the purchaser that extensive work was required to the drains. When the defendant found out that Harrods were engaged on both sides she complained. Harrods invited her to obtain an independent survey of the drains. The defendant refused, but she completed the sale at an agreed price reduction because of the work required to the drains. The defendant refused to pay commission on sale.

The Court of Appeal held that there had been a breach of duty by Harrods, but that, knowing the facts, the defendant had elected to continue with them as agents. Therefore Harrods were entitled to their commission.