Category Archives: Law of Agency

Property Law: A seller’s liability for the non-fraudulent misrepresentations by an estate agent

It is often disputed that misrepresentations made by an estate agent in the sale of property bind his or her mandate.

A contracting party who seeks relief on the basis of a misrepresentation or misstatement must establish the following elements:

a precontractual incorrect statement; which was material or wrongful (unlawful); made by the other party to the contract (or someone for whom he or she is responsible); with the intention of inducing the contract; and which induced the contract or caused the other party to suffer loss... Read More

Estate Agents: No Fidelity Fund Certificate, No Commission?

Section 34A of the Estate Agency Affairs Act 112 of 1976 requires that an estate agent must have been issued with a valid Fidelity Fund Certificate before he or she will be entitled to remuneration or other payment arising from the performance of any duties of an estate agent.

In the recent High Court judgment of Crous International (Pty) Ltd v Printing Industries Federation of South Africa an estate agent claimed commission from his principal following the successful sale of its immovable property... Read More

The Law of Agency: Makate and the Vodacom blunder

Kieren Sharpley considers the impact of the recent case of KN Makate v Vodacom on the law of agency in South Africa. Known as the  “The Please Call Me -case”), it sought to clarify the confusion surrounding the principles of actual authority, apparent or ostensible authority and when estoppel should be invoked as an appropriate case.

The case also narrowed the definition of debt as contained in the Prescription Act, and reaffirmed that pacta de contrahendo (agreements to agree or to contract in the future) were enforceable in South African Law... Read More

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