Dorfman and Another v Kimberley House Jewellers (Pty) Ltd and Another (19253/2016) [2017] ZAGPJHC 328 (10 October 2017)

Dorfman and Another v Kimberley House Jewellers (Pty) Ltd and Another (19253/2016) [2017] ZAGPJHC 328 (10 October 2017)

The court found that the applicants, acting as estate agents, introduced the buyer to the property and seller, facilitated the transaction, and made it clear that commission would be payable if the sale was concluded. The buyer did not repudiate this obligation and, by conduct and correspondence, acknowledged the applicants' entitlement to commission. Even if no express oral agreement existed, the facts and circumstances established an implied contract of agency. The applicants were the effective cause of the sale, and the absence of an agreed commission rate did not render the agreement void. The applicants are entitled to reasonable remuneration, being the prevailing or standard rate of...

Citation
[2017] ZAGPJHC 328
Parties
Applicant: Dawn Phyllis Dorfman; Applicant: Abe Flax; Respondent: Kimberley House Jewellers (Pty) Ltd; Respondent: Lawrence Alon Brown
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
10 October 2017
Case Number
19253/2016
Procedural Posture
Civil Application / Judgment
Outcome
Application granted. The first respondent is ordered to pay the applicants commission at the prevailing rate, plus VAT and interest.
Judges
P.A. Meyer
Legal Topics
Estate Agency Commission, Implied Contract of Agency, Effective Cause of Sale, Reasonable Remuneration, Customary Rate of Commission
Commercial and Corporate Estate Agency Commission Implied Contract of Agency Effective Cause of Sale Reasonable Remuneration Customary Rate of Commission

Case Brief

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Parties

Dawn Phyllis Dorfman

Applicant

Abe Flax

Applicant

Kimberley House Jewellers (Pty) Ltd

Respondent

Lawrence Alon Brown

Respondent

Procedural Posture

Civil Application / Judgment

Legal Issues

  1. 1 Whether the applicants had an express or implied mandate from the buyer to act as estate agents in the sale.
  2. 2 Whether the applicants were the effective cause of the sale and entitled to commission.
  3. 3 Whether the absence of an agreed commission rate renders the agreement void or unenforceable.

Ratio Decidendi

The court found that the applicants, acting as estate agents, introduced the buyer to the property and seller, facilitated the transaction, and made it clear that commission would be payable if the sale was concluded. The buyer did not repudiate this obligation and, by conduct and correspondence, acknowledged the applicants' entitlement to commission. Even if no express oral agreement existed, the facts and circumstances established an implied contract of agency. The applicants were the effective cause of the sale, and the absence of an agreed commission rate did not render the agreement void. The applicants are entitled to reasonable remuneration, being the prevailing or standard rate of...

Court Disposition

Application granted. The first respondent is ordered to pay the applicants commission at the prevailing rate, plus VAT and interest.

Orders

  • The first respondent is to pay the sum of R1,200,000.00 plus VAT to the applicants and interest thereon at the rate of 9% per annum from 30 June 2015 until date of payment.
  • The first respondent is to pay the applicants' costs of suit, including those of two counsel.