When a business transfer agent introduces a buyer and the business is subsequently sold, the agent is entitled to his commission according to the terms of the contract.
In a recent case, the contract with the agent specified that the commission was due when contracts were exchanged with the purchaser – ‘purchaser’ being defined as ‘anyone acting on behalf of the eventual purchaser’.
Surprisingly, when the person introduced became a partner in a partnership that subsequently bought the business, the entitlement of the agent to a sales commission was disputed.
The court had little difficulty in agreeing with the agent that the definition of ‘purchaser’ contained in the contract clearly included the partner and ordered the vendor to pay the agent the commission due.