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Rhodes v Macalister (1923)


  • 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


  • Could the agency agreement be terminated without commission being paid?


  • Yes


  • 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
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