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Bairstow Eves London Central Ltd v Smith and another

Series: Estates Gazette ; [2004] 29 EG 118-123(6)Publication details: 2004Subject(s): Summary: [2004] EWHC 263 (QB), 20 February 2004. Claimant estate agent (B) agreed with defendant vendor (S) a 1.5% commission upon selling S's flat if paid within 10 days of completion, rising to 3% if paid thereafter. As the vendors' solicitor (D) failed to pay the 1.5% within the 10-day period, B proceeded to recover the full 3%. The judge held that the provisions of the agreement requiring the full 3% were unfair under the Unfair Terms in Consumer Contracts Regulations 1999 Reg 5(1) and that if the 3% was payable, D would have had to indemnify S. B appealed contending that Reg 6(2) of the Regulations, which excluded adequacy of price or remuneration against services supplied from the assessment of unfairness, did not apply and Reg 5(1) containing the tests of unfairness, was not engaged. "Held": appeal dismissed. Reg 6(2) was inapplicable because both parties had contemplated an agreed operative price of 1.5% with a 3% default provision if S failed to fulfil the obligation to pay within 10 days of completion. Reg 5(1) applied and the 3% commission was correctly determined to be unfair and did not bind the vendors. View judgment at www.courtservice.gov.uk.
Holdings
Item type Current library Call number Copy number Status Barcode
Law report London Journal article ABS68057 (Browse shelf(Opens below)) 1 Available 126921-1001

[2004] EWHC 263 (QB), 20 February 2004. Claimant estate agent (B) agreed with defendant vendor (S) a 1.5% commission upon selling S's flat if paid within 10 days of completion, rising to 3% if paid thereafter. As the vendors' solicitor (D) failed to pay the 1.5% within the 10-day period, B proceeded to recover the full 3%. The judge held that the provisions of the agreement requiring the full 3% were unfair under the Unfair Terms in Consumer Contracts Regulations 1999 Reg 5(1) and that if the 3% was payable, D would have had to indemnify S. B appealed contending that Reg 6(2) of the Regulations, which excluded adequacy of price or remuneration against services supplied from the assessment of unfairness, did not apply and Reg 5(1) containing the tests of unfairness, was not engaged. "Held": appeal dismissed. Reg 6(2) was inapplicable because both parties had contemplated an agreed operative price of 1.5% with a 3% default provision if S failed to fulfil the obligation to pay within 10 days of completion. Reg 5(1) applied and the 3% commission was correctly determined to be unfair and did not bind the vendors. View judgment at www.courtservice.gov.uk.