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Overbrooke Estates v Glencombe Properties [1974]

Facts

  • Auctioneers were employed as agents to sell goods for Overbrooke Estates as principal
  • Glencombe Properties placed the winning bid on Overbrooke’s property
  • The conditions of sale prevented the auctioneers from making any representation or warranty in relation to the property
  • The auctioneers falsely represented to Glencombe before their bid that the council had no plans to compulsorily purchase the property
  • The council subsequently announced its programme of compulsory purchases, which would include Glencombe’s new property

Issue

  • Could an order for specific performance be obtained?

Decision

  • Yes

Reasoning

  • Overbrooke were not responsible for the representation and apparent authority had been expressly denied, overruling the auctioneer’s representation
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