GWAFA v SMALL ENTERPRISES DEVELOPMENT CORPORATION & ANOR 1999 (2) ZLR 261 (S)

Flynote

Agency ” agent ” authority ” ostensible or apparent authority ” principles ” auctioneer ” ostensible authority to conclude sales of properties sold by public auction

Headnote

The first respondent put a number of vehicles up for sale by auction. The appellant bid for one of them and the auctioneer confirmed that he had won the tender. However, when the appellant tendered payment, the first respondent refused to hand over the vehicle. The conditions of sale did not specify that the first respondent's approval was essential before the sale became binding on it and the auctioneer did not tell the appellant that this was the case. The appellant sought an order compelling the first respondent to hand over the vehicle, arguing that the first respondent was bound by the agreement concluded with the auctioneers because the auctioneers had ostensible authority to conclude the sale.

An auctioneer has ostensible authority to conclude a sale agreement in respect of the property being sold by public auction for other persons, because it is generally recognised that an auctioneer has authority to conclude sales of properties which he sells by public auction. The agreement reached by the appellant with the auctioneer bound the first respondent.