Cases - Graylaw Investments Ltd v JR Bridgford & Sons
Record details
- Name
- Graylaw Investments Ltd v JR Bridgford & Sons
- Date
- [1983]
- Citation
- 1 EGLR 32
- Legislation
- Keywords
- Estate agency - Landlord and Tenant Act 1954
- Summary
-
A property company instructed a firm of estate agents to negotiate with business tenants to secure vacant possession of a building and to arrange compensation for surrender of their leases. It was wrongly believed by the company (and the agents) that such compensation agreements would not be binding in law under section 38 of the Landlord and Tenant Act 1954. The property company claimed a breach of authority by the agents, in that they had entered binding agreements with the tenants.
The Court of Appeal held that, although the company had not intended to grant the agents authority to enter binding agreements, they had authorised them to enter agreements which turned out to be binding. This was not the fault of the agents who had simply carried out their instructions.