Cohen v Reid

Cohen (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the appellant's entitlement to a commission on the sale of a property. The respondent, a real estate agent, claimed the commission was due under an exclusive agency agreement, while the appellant argued that the sale had been effected by his own efforts, thereby negating the agent's entitlement.

The central legal issue before the Court of Appeal was whether the respondent had earned its commission under the terms of the exclusive agency agreement, notwithstanding that the ultimate purchaser was introduced by the appellant himself. This required the Court to consider the interpretation of the agency agreement, particularly the conditions under which the agent's commission would be payable and whether the appellant's actions in introducing the purchaser constituted a breach of the agreement or a valid defence to the claim for commission.

The Court of Appeal found that the exclusive agency agreement stipulated that the agent was entitled to commission if the property was sold to a person introduced by the agent or by any other person during the currency of the agreement. The Court held that the appellant's introduction of the purchaser, even if he had found the purchaser independently, did not defeat the agent's claim for commission because the sale occurred during the period of the exclusive agency. The principle applied was that an exclusive agency agreement grants the agent a right to commission on any sale effected during the term, regardless of who introduced the purchaser, unless the agreement specifically provides otherwise. The appeal was dismissed.