ABDULLA AHMED versus ANIMENDRA KISSEN MITTER

ABDULLA AHMED versus ANIMENDRA KISSEN MITTER

Where a commission note authorises an estate broker to 'negotiate the sale' and 'secure a purchaser' at a fixed price, and the agent introduces purchasers who are ready and willing to purchase at that price and a sale is ultimately concluded with them (directly resulting from the agent's efforts), the broker is entitled to commission on the basis of the price for which the purchasers were originally willing to purchase (here, Rs. 1,10,000), notwithstanding that the sale was eventually concluded at a lower price (Rs. 1,05,000), unless the terms expressly make payment contingent only on the completion at the stipulated price.

Parties
Appellant: Abdulla Ahmed; Respondent: Animendra Kissen Mitter
Jurisdiction
India
Judgment Date
14 March 1950
Procedural Posture
Civil Appeal / Supreme Court Appeal by Special Leave From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Commission Contracts, Rights of Estate Brokers, Agency Law
Contract Law Commission Contracts Rights of Estate Brokers Agency Law

Case Brief

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Parties

Abdulla Ahmed

Appellant

Animendra Kissen Mitter

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal by Special Leave From High Court Judgment

Legal Issues

  1. 1 Whether an estate broker authorised to 'negotiate a sale' and 'secure purchaser' is entitled to commission if the sale is concluded at a lower price with the introduced purchaser
  2. 2 Whether the broker is authorised to conclude a binding contract of sale
  3. 3 Meaning of 'purchaser' or 'buyer' in commission contracts

Ratio Decidendi

Where a commission note authorises an estate broker to 'negotiate the sale' and 'secure a purchaser' at a fixed price, and the agent introduces purchasers who are ready and willing to purchase at that price and a sale is ultimately concluded with them (directly resulting from the agent's efforts), the broker is entitled to commission on the basis of the price for which the purchasers were originally willing to purchase (here, Rs. 1,10,000), notwithstanding that the sale was eventually concluded at a lower price (Rs. 1,05,000), unless the terms expressly make payment contingent only on the completion at the stipulated price.

Court Disposition

Appeal allowed

Orders

  • Decree in favour of the appellant for commission (Rs. 6,000) restored with costs throughout.