In the recent case of Savills (NSW) Pty Ltd v ATF CTH Pty Ltd [2020] NSWSC 956 the Court considered whether an agent could be awarded commission without a valid agency agreement. Savills (the Plaintiff) claimed commission under an “alleged” agency agreement, whereby they were retained by the ATF (the defendant) to sell their property. Savills further alternatively claimed damages for the defendant’s unconscionable conduct in encouraging the plaintiff to do work on the basis of assumption that the plaintiff was the defendant’s exclusive agent for the sale of the property. ATF denied that there was any written agreement with Savills and contended that even if there was a concluded agreement, it did not entitle Savills to payment. ATF also argued that it did not act unconscionably and that the evidence provided by Savills did not prove loss from the alleged unconscionable conduct. The Supreme Court ultimately held that Savills had failed to prove that on the balance of possibilities there was a signed agency agreement. The Court further held that ATF did not engage in unconscionable conduct. This case is a warning to Agents to ensure that they have an executed agency agreement and keep copies of it as evidence.

Leave a Reply

%d bloggers like this: