Wells v Devani [2019]

Court: UK Supreme Court

Facts: Devani, an estate agent, sought commission from Wells after introducing a buyer for Wells’ flats. Devani claimed that he was entitled to 2% commission, while Wells argued no discussion about commission had occurred, and refused payment. The High Court found a binding contract but reduced Devani’s commission under the Estate Agents Act 1979. The Court of Appeal disagreed, finding no contract. Devani appealed.

Issue: Whether a binding contract existed between the parties despite a lack of explicit agreement on when the commission was due.

Held: The Supreme Court upheld the High Court's decision, ruling that a binding contract existed, and the commission was payable upon completion of the sale.

Key Judicial Statement: Lord Kitchin: The parties’ intent was clear, and the payment of commission was naturally understood to be due upon completion, even if this was not explicitly discussed. If needed, a term could be implied to ensure business efficacy.

💡 Leveluplaw: This case demonstrates that a contract can still be valid even when some terms are left unstated, as long as the agreement is clear through context. Courts will use interpretation, and if necessary, implication, to ensure contracts are enforceable.