John D Wood & Co (Residential and Agricultural Ltd) v Craze

John D Wood & Co (Residential and Agricultural Ltd) v Craze

Commission was not payable as the contract for sale was void ab initio due to fraudulent misrepresentation, and thus unenforceable. However, an implied term existed that the Defendant would not make fraudulent representations rendering the contract unenforceable, entitling the Claimant to damages if loss is proved.

Parties
Claimant: John D Wood & Co (Residential and Agricultural Ltd); Defendant: Edward Craze
Jurisdiction
England and Wales
Judgment Date
30 November 2007
Procedural Posture
Appeal / Ruling on Appeal From Summary Judgment/strike Out Application
Outcome
Appeal allowed in part; summary judgment/strike out granted on all grounds except implied term claim.
Legal Topics
Estate Agency Commission, Implied Terms, Fraudulent Misrepresentation, Quantum Meruit, Summary Judgment, Strike Out
Contract Law Agency Law Estate Agency Commission Implied Terms Fraudulent Misrepresentation Quantum Meruit Summary Judgment Strike Out

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Parties

John D Wood & Co (Residential and Agricultural Ltd)

Claimant

Edward Craze

Defendant

Procedural Posture

Appeal / Ruling on Appeal From Summary Judgment/strike Out Application

Legal Issues

  1. 1 Whether commission is payable when contract for sale is rescinded due to fraudulent misrepresentation
  2. 2 Whether implied terms exist in estate agency agreements regarding fraudulent representations
  3. 3 Whether quantum meruit claim is sustainable where contract provides for remuneration

Ratio Decidendi

Commission was not payable as the contract for sale was void ab initio due to fraudulent misrepresentation, and thus unenforceable. However, an implied term existed that the Defendant would not make fraudulent representations rendering the contract unenforceable, entitling the Claimant to damages if loss is proved.

Court Disposition

Appeal allowed in part; summary judgment/strike out granted on all grounds except implied term claim.

Orders

  • Claimant's claim for commission and quantum meruit dismissed.
  • Claimant's claim for damages for breach of implied term (fraudulent misrepresentation) to proceed to trial.