Kerry Lowe Management Pty Ltd v Isherwood

Kerry Lowe Management Pty Ltd (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 commission on the sale of a property. The respondent, Mr. Isherwood, had engaged the appellant to sell his property, and a dispute arose regarding whether the sale had been effected by the appellant's introduction of a purchaser.

The Court of Appeal was required to determine whether the appellant had fulfilled its contractual obligations to introduce a purchaser who was ready, willing, and able to complete the purchase of the property. Specifically, the court had to consider whether the sale that ultimately occurred was a direct consequence of the appellant's efforts and whether the respondent had acted in good faith in terminating the agency agreement.

The Court of Appeal found that the appellant had indeed introduced a purchaser who was ready, willing, and able to purchase the property on terms acceptable to the vendor. The court held that the respondent had wrongfully repudiated the agency agreement by terminating it before the expiry of the agreed period and before the sale was completed. The principles applied included the implied duty of good faith in agency contracts and the entitlement of an agent to commission upon introducing a ready, willing, and able purchaser, even if the vendor subsequently withdraws from the sale or terminates the agency.

The Court of Appeal allowed the appeal, setting aside the Supreme Court's judgment and ordering that the appellant was entitled to the commission claimed.