Clarke v Franzen Pty Ltd & Ors

Clarke was the vendor of a property and engaged Franzen Pty Ltd as their real estate agent. A dispute arose concerning the authority of the real estate agent to exchange contracts for the sale of the property. The matter was brought before the court to determine whether the real estate agent had been expressly given verbal authority to exchange contracts on behalf of the vendor. The key issue was whether the real estate agent had the authority to exchange contracts for the sale of the property based on verbal instructions from the vendor.

The court examined the evidence presented regarding the verbal instructions given by the vendor to the real estate agent. The court considered whether the instructions were clear, specific, and unambiguous, and whether the real estate agent had acted within the scope of their authority. The court also considered the nature of the relationship between the vendor and the real estate agent, as well as any relevant industry practices and customs. The court found that the vendor had expressly given verbal authority to the real estate agent to exchange contracts for the sale of the property.

Having found that the real estate agent had been expressly given verbal authority to exchange contracts for the sale of the property, the court determined that the real estate agent had acted within the scope of their authority. The court held that the verbal instructions given by the vendor to the real estate agent were clear, specific, and unambiguous, and that the real estate agent had acted in accordance with those instructions. The court also noted that the vendor had ratified the actions of the real estate agent by accepting the exchanged contracts and acknowledging their validity. The court ordered that the sale of the property proceed as per the exchanged contracts, with the real estate agent's authority to exchange contracts being upheld.