Cases - Poole v Clarke & Co

Record details

Name

Poole v Clarke & Co

Date

[1945]

Citation

2 AII ER 445

Keywords

Estate agency - commission

Summary

The plaintiff signed a form instructing the defendant agents 'to find a purchaser' for his house. The agreement also authorised the agent to receive any deposit and to apply it, on signing of the contract, towards their commission of 10% and expenses. The defendants introduced someone who signed a legally binding contract to buy the plaintiff's house and paid £100 deposit to the defendants. This person turned out to be a 'man of straw'. He was unable to raise the money for the purchase and so forfeited his deposit. The plaintiff claimed the deposit, but the defendants contended that they were entitled to keep it as their commission, having found a purchaser.

The judge held that, even though a contract had been entered into, the agents had not found a purchaser. A purchaser is a person who is both willing and able to complete. It could not include a man of straw or a man without means.