Cases - Spiers v Taylor

Record details

Name

Spiers v Taylor

Date

[1984]

Citation

2 EGLR 34

Keywords

Estate agency

Summary

The terms of the agent's instructions included:

'The property to be advertised without cost to the vendor and entered on the agents list of properties for sale at the asking price of £34,500'.

Without the authority of the client vendor, the agent informed a prospective purchaser that the vendor would accept £33,000. He then wrote to the vendor stating that the prospective purchaser had agreed to purchase the property for the asking price. This was false. Later the vendor discovered that the purchaser had only offered £33,500. The vendor was not prepared to accept this price but eventually agreed with the purchaser on a price of £34,000 and the sale went through. (The vendor wished to avoid breaking the chain of sales.)

The Court of Appeal held that the instruction to advertise at the stipulated asking price was an essential term of the contract. No commission was due until this condition was fulfilled. The vendor was also entitled to damages for loss.

(Note: The High Court had fixed damages at £50 for the loss of a chance of obtaining a higher price.)