Devani v Wells

Subject Matter

AGENCY — Estate agent — Contract — Information to client of prospective liabilities — Estate agent providing terms of business after offer to buy accepted — Parties failing to specify event giving rise to agent’s commission — Estate agent applying for enforcement of contract — Whether “prejudice” and “culpability” to be considered together — Whether just to dismiss claim — Whether commission to be reduced to compensate client for prejudice — Estate Agents Act 1979 (c 38), s 18(6)(a)(b)

[2016] EWCA Civ 1106; [2017] QB 959; [2017] 2 WLR 1391; [2016] WLR (D) 604, CA

CONTRACT — Formation — Implied term — Parties agreeing orally that claimant introduce buyer for defendant’s properties — Parties not specifying event triggering claimant’s entitlement to commission — Whether parties’ bargain complete — Claimant introducing buyer — Claimant providing terms of business after defendant’s acceptance of offer to buy — Claimant seeking commission after completion — Whether legitimate to imply term as to event triggering entitlement to commission so as to convert incomplete bargain into legally binding contract

[2016] EWCA Civ 1106; [2017] QB 959; [2017] 2 WLR 1391; [2016] WLR (D) 604, CA

CONTRACT — Formation — Implied term — Parties agreeing orally that estate agent introduce buyer for vendor’s properties — No express agreement as to event triggering agent’s entitlement to commission — Whether parties’ bargain complete — Whether agreement containing term providing for payment of commission on completion — Whether legitimate to imply such term so as to convert incomplete bargain into legally binding contract

[2019] UKSC 4; [2020] AC 129; [2019] 2 WLR 617; [2019] 3 All ER 379; [2019] 2 All ER (Comm) 373; [2019] WLR (D) 104; [2019] WLR(D) 104; Case details, SC(E)

AGENCY — Estate agent — Contract — Estate agent breaching statutory obligation to inform client of prospective liabilities — Agent applying for enforcement of contract notwithstanding breach — Whether just to dismiss agent’s application — Whether commission to be reduced to compensate client for prejudice — Proper approach to agent’s “culpability” and “prejudice” to client — Estate Agents Act 1979 (c 38), s 18(6)

[2019] UKSC 4; [2020] AC 129; [2019] 2 WLR 617; [2019] 3 All ER 379; [2019] 2 All ER (Comm) 373; [2019] WLR (D) 104; [2019] WLR(D) 104; Case details, SC(E)

AGENCY — Estate agent — Contract — Information to client of prospective liabilities — Estate agent providing terms of business after offer to buy accepted — Parties failing to specify event giving rise to agent’s commission — Estate agent applying for enforcement of contract — Whether degree of culpability of agent sufficient to justify dismissal of the agent’s claim for commission — Estate Agents Act 1979 (c 38), s 18

[2019] UKSC 4; [2020] AC 129; [2019] 2 WLR 617; [2019] 3 All ER 379; [2019] 2 All ER (Comm) 373; [2019] WLR (D) 104; [2019] WLR(D) 104; Case details, SC(E)

CONTRACT — Formation — Implied term — Parties agreeing orally that claimant introduce buyer for defendant’s properties — Claimant stating his commission fees during conversation — Parties not specifying event triggering claimants entitlement to commission — Whether parties’ bargain complete — Claimant introducing buyer — Claimant providing written terms of business after defendant’s acceptance of offer to buy — Claimant seeking commission after completion — Whether term providing for payment of commission on completion contained in agreement — Whether legitimate to imply term as to event triggering entitlement to commission so as to convert incomplete bargain into legally binding contract

[2019] UKSC 4; [2020] AC 129; [2019] 2 WLR 617; [2019] 3 All ER 379; [2019] 2 All ER (Comm) 373; [2019] WLR (D) 104; [2019] WLR(D) 104; Case details, SC(E)

Appellate History

Commentary

Out-Law
Supreme Court upholds estate agent contract formed over telephone Case comment

UK Supreme Court Blog
Case Comment: Wells v Devani [2019] UKSC 4 Case comment

Blackstones Civil Practice 2023
Terms of the Contract 89.17