Favermead Ltd v FPD Savills Ltd

Favermead Ltd v FPD Savills Ltd

There is a real and substantial dispute as to whether the agency agreement contains an implied term requiring the agents to be the effective cause of the sale; this dispute cannot be resolved at this stage, and the proper course is to grant the injunction restraining presentation of the winding up petition.

Parties
Applicant: Favermead Limited; Respondents: FPD Savills Limited & Ors.
Jurisdiction
England and Wales
Judgment Date
02 March 2005
Procedural Posture
Application / Ruling on Interlocutory Injunction
Outcome
Injunction granted
Legal Topics
Agency, Commission Agreements, Implied Terms, Injunctions

Case Brief

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Parties

Favermead Limited

Applicant

FPD Savills Limited & Ors.

Respondents

Procedural Posture

Application / Ruling on Interlocutory Injunction

  1. 1 Whether an implied term requiring the agents to be the effective cause of sale exists in the agency agreement
  2. 2 Whether commission is payable absent agents being the effective cause of sale
  3. 3 Whether an injunction restraining presentation of winding up petition should be granted

Ratio Decidendi

There is a real and substantial dispute as to whether the agency agreement contains an implied term requiring the agents to be the effective cause of the sale; this dispute cannot be resolved at this stage, and the proper course is to grant the injunction restraining presentation of the winding up petition.

Court Disposition

Injunction granted

Orders

  • Respondents restrained from presenting winding up petition based on the alleged debt pending determination of the substantive dispute