Fishof 1207 CC v Rapiddough Properties 459 CC (8763/07) [2010] ZAWCHC 534 (8 November 2010)

Fishof 1207 CC v Rapiddough Properties 459 CC (8763/07) [2010] ZAWCHC 534 (8 November 2010)

The court found that the Plaintiff, operating under the trade name Fine and Country, was entitled to claim commission as principal under the exclusive mandate. The Defendant sold the properties during the mandate period, and the agreement stipulated a commission of 7.5% plus VAT. The absence of the Plaintiff's name in the mandate did not preclude its claim, as it was the principal in the franchise arrangement. The Defendant's argument regarding effective cause failed, as the law provides that commission is payable when the sale occurs during the exclusive mandate period, regardless of who effects the sale. The Plaintiff proved its case on a balance of probabilities and was entitled to the...

Citation
[2010] ZAWCHC 534
Parties
Plaintiff: Fishof 1207 CC; Defendant: Rapiddough Properties 459 CC
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
8 November 2010
Case Number
8763/07
Procedural Posture
Civil Trial / Final Judgment
Outcome
Plaintiff's claim for commission succeeded; Defendant ordered to pay commission, VAT, interest, and costs.
Judges
Veldhuizen
Legal Topics
Estate Agent Commission, Exclusive Mandate, Principal Agent Relationship, Effective Cause, Contractual Liability
Commercial and Corporate Estate Agent Commission Exclusive Mandate Principal Agent Relationship Effective Cause Contractual Liability

Case Brief

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Parties

Fishof 1207 CC

Plaintiff

Rapiddough Properties 459 CC

Defendant

Procedural Posture

Civil Trial / Final Judgment

Legal Issues

  1. 1 Whether the Plaintiff is entitled to commission on the sale of two properties under an exclusive mandate.
  2. 2 Whether the absence of the Plaintiff's name in the mandate precludes it from claiming commission.
  3. 3 Whether the Defendant's direct sale of the properties during the mandate period affects commission liability.

Ratio Decidendi

The court found that the Plaintiff, operating under the trade name Fine and Country, was entitled to claim commission as principal under the exclusive mandate. The Defendant sold the properties during the mandate period, and the agreement stipulated a commission of 7.5% plus VAT. The absence of the Plaintiff's name in the mandate did not preclude its claim, as it was the principal in the franchise arrangement. The Defendant's argument regarding effective cause failed, as the law provides that commission is payable when the sale occurs during the exclusive mandate period, regardless of who effects the sale. The Plaintiff proved its case on a balance of probabilities and was entitled to the...

Court Disposition

Plaintiff's claim for commission succeeded; Defendant ordered to pay commission, VAT, interest, and costs.

Orders

  • The Defendant is ordered to pay the sum of R300,000 plus VAT to the Plaintiff.
  • The Defendant is ordered to pay interest on the sum of R300,000 a tempore morae to date of payment.