Cases - Eric V Stansfield v South East Nursing Home Services Ltd

Record details

Name

Eric V Stansfield v South East Nursing Home Services Ltd

Date

[1988]

Citation

1 EGLR 29

Keywords

Estate agency

Summary

The plaintiff estate agents received information about the sale of large premises from the vendor's agents. This information was provided on the understanding that, if the plaintiffs found a purchaser, no commission would be due from the vendor or the vendor's agents. The plaintiffs approached 3 possible purchasers, including the defendants, requiring them to sign a 2% commission agreement in the event of purchase, in return for disclosing details of the property for sale. All 3 signed the document. When the defendants completed the purchase, they refused to pay the plaintiffs' commission, alleging that the plaintiffs had not disclosed that they were also acting for 2 other prospective purchasers, which therefore pushed up the price and thereby the commission.

The judge accepted that it would be a breach of duty to act for more than 1 purchaser without the consent of both, but found, on the facts, that the plaintiffs had not acted for the others. After the defendants had made a firm bid, the plaintiffs considered themselves to be acting for them, and refused to divulge that bid when one of the other parties asked what it was. The judge stated that the duty arises, in a case such as this, when one of the parties demonstrates a real intent to buy; for example, instructing the agent to go ahead with the purchase. Even if there were a duty to disclose the possible interest of the other 2 parties at the outset, the plaintiffs had acted in good faith throughout, and were entitled to their commission.