Cases - Robinson Scammell & Co v Ansell

Record details

Name

Robinson Scammell & Co v Ansell

Date

[1985]

Citation

2 EGLR 41

Keywords

Estate agency

Summary

The vendors' agent was informed by another agent that the vendors might pull out because the 'chain' above them had collapsed and they would lose their purchase. The agent tried but failed to contact the vendors by telephone in order to take instructions. The agent then telephoned the purchasers to inform them of the situation. The purchasers were rather alarmed, and asked to see alternative properties. The agent provided alternatives for the purchasers to view. Subsequently the agent managed to contact the vendors and told them what had happened and that he had informed the prospective purchaser. The vendors were surprised and upset at the agent's conduct and terminated the contract, treating the agent's action as repudiation. The vendors were able to complete the transaction because they were prepared to move into rented accommodation, and did so. The agent sued the vendors for commission.

It was held that the agents had committed a breach of duty, but were entitled to their commission because, following Keppel v Wheeler, they had acted honestly and in good faith and had been the effective cause of the sale. Lord Justice Purchas stated that in the case of estate agents, in respect of whom it is generally known and acknowledged that they will have a number of principals to each of whom they will owe a duty, the proposition that a conflict of any kind will disentitle the agent to commission is 'too broadly stated'.

In passing, Lord Justice Purchas also stated that 'it may well have been a breach of confidentiality to disclose information of this kind' but that it was unnecessary to decide the point in the circumstances of the case.