Cases - Richard Ellis v Pipe-Chem (Holdings) Ltd

Record details

Name

Richard Ellis v Pipe-Chem (Holdings) Ltd

Date

[1981]

Citation

EGD 222

Keywords

Estate agency

Summary

The plaintiff agents were engaged to find premises for the defendant company. The plaintiffs found suitable premises and it was agreed that commission would be due 'when the lease has been completed'. The landlord was not satisfied with the financial position of the defendant, and so the defendant suggested that another company (a creditor of the defendant) be granted a lease identical to the one sought by the defendants, which would then be underleased to the defendant on similar terms. When these transactions were completed, the plaintiffs claimed commission.

The judge found that there was no deliberate intention to create a device to avoid payment. Therefore commission was not due as the commission earning event - the lease to the defendant - had not occurred. There was no justification to imply a term giving the plaintiffs' commission. It was not necessary in order to give the contract business efficacy.