Cases - Solicitors' Estate Agency (Glasgow) Ltd v MacIver

Record details

Name
Solicitors' Estate Agency (Glasgow) Ltd v MacIver
Date
[1993]
Citation
SLT 23
Legislation
Keywords
Estate agency
Summary

The agent received an 18% discount for a block advertisement in the Glasgow Herald. This discount was not revealed to the client and the full charge was passed on. When the agents sought their fees and advertising costs, the client claimed the contract was unenforceable because the particulars of an amount of non-remuneration payment had not been provided, contrary to section 18(2)(d), above.

The sheriff described the conduct of the agents as 'significantly culpable' because it not only deprived the vendor of the discount, but also deprived him of information which might have led him to consider his position more carefully and perhaps seek a quotation elsewhere. He determined that the contract should be enforced, but awarded a reduction of 50% (£317) of the sum due to compensate the vendor for the prejudice suffered.

On appeal to the sheriff principal, it was held that the agents were also in breach of section 18(2)(a) because, in effect, the secret discount was undisclosed remuneration. The sheriff principal therefore held that the sheriff's exercise of discretion was vitiated, and determined that the entire contract was unenforceable because a breach of paragraphs (a) and (b) was more serious than a breach of paragraphs (c) and (d), as the former relate to remuneration. However, the Court of Session restored the sheriff's original decision because the breach of paragraph (a) had not been argued before him. Furthermore, he had considered all material factors and had clearly understood that the client was being overcharged.