Facts
- An agent was instructed to sell a property for his principal, with commission being paid by the agent keeping any amount of money over a certain threshold price
- The agent sold the property at a commissionable value, but also obtained a bonus from the buyer
Issue
- Could the agency agreement be terminated without commission being paid?
Decision
- Yes
Reasoning
- A principal need not be disadvantaged by the payment of an unauthorised commission for an agent to be liable under strict fiduciary duties
- Commission will be forfeited on any tainted services as a result of a breach of fiduciary obligations
