Break in the chain of causation – Factory for sale in Singapore
In a non-exclusive marketing arrangement, more than one agent may be involved in a sale. For example, the first Agent A found a potential Buyer Z for the Property P, negotiated on the price, made an offer which was conveyed to the Seller S. However potential Buyer Z, within a short period of about a week, purchased the Property P through another Agent B at the same offered price. Factory for sale in Singapore. Agent A sued the Seller S for the commission and won because Agent A was the effective cause and there was no break in the chain of causation. Factory for sale in Singapore
However, if there is a break in the chain of causation especially after a lapse of time, say 3 months, it would be more difficult for A to calm to be the effective cause especially if Agent B can show proof that he is the one who convinced Buyer Z to buy. Factory for sale in Singapore
In the Court case of Grandhome Pte Ltd v Ng Kok Eng [1996] it was held that “where it is established that, Factory for sale in Singapore
- an owner agreed to pay an agent a commission for finding a buyer for a property;
- the agent engendered the interest of a buyer in the property;
- the buyer made an offer for the property which the agent conveyed to the owner;
- the owner eventually sold the property to the same buyer at the same price offered through the agent; and
- events (b) and (d) took place within a short space of time;
the agent would have discharged the necessary burden of proof to establish a prima facie case for being the causa causans or effective cause of the sale. The owner could, of course, seek to show why, despite all this, the agent was not the effective cause. But if he failed to do so the agent would succeed.” Factory for sale in Singapore
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