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DOUBLE MANDATE AND AGENT COMMISSIONTO ALL EXTENDED BUSINESS PARTNERS |
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08/2016 |
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In the recent case of Lushaka Investments (Pty) Ltd v JHI Properties (Pty) Ltd (A5085/2014) [2016] ZAGPJHC 45 dated 31 March 2016 (case attached for ease of reference) it is once again confirmed that the granting of an exclusive mandate to an agent must be dealt with, with extreme caution.
From the case it is clear that an agent will only become entitled to agent commission, where such agent was the effective, efficient or dominant cause of the sale. In the case in question the agent was not the effective, efficient or dominant cause of the sale, but by virtue of the sole mandate afforded, was prevented from earning the commission due by virtue of the breach by the mandator. The claim for commission did not succeed, but a claim for damages equal to the loss in commission was granted and this should once again be a stern warning to persons affording sole mandates not to breach the mandate. For any queries please contact our property law division at the details below: Allen Stanley West Daleen Loubser |
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Disclaimer: This newsflash is for general information only and should not be used as legal or professional advice. No liability can be accepted for any errors or omissions, nor for any loss or damage arising from reliance and any information therein |
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