Why an Oral Estate Agency Mandate Isn’t Worth the Paper It’s Written On
As Samuel Goldwyn humorously put it: “A verbal contract isn’t worth the paper it’s written on.”
To illustrate, we analyse a recent High Court fight over an agent’s claim to have been given a verbal mandate to find a development property for a buyer. The agent was found to have fulfilled her mandate, and the Court awarded her commission even though the sale agreement had been cancelled before transfer. The developer is left with a R450k (plus costs) bill, and no property to show for it. How and why did the agent win her case?