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November 23, 2022

In March 24, 2017, SPM Properties (SPM) contracted with Mr. Rolf Robert to find a purchaser for his Horizon Building Shopping complex in Olympia for the price of N$ 17 million.

In March 24, 2017, SPM Properties (SPM) contracted with Mr. Rolf Robert to find a purchaser for his Horizon Building Shopping complex in Olympia for the price of N$ 17 million. In terms of the contract SPM was to receive 5% commission on the purchase price if a sale was effected. SPM advertised the complex and one Mr. Mozart having seen the advertisement approached SPM, who took him to the property, which he inspected. Mr. Mozart advised SPM that he was prepared to offer N$12.2 million for the complex. SPM informed MR. Robert but he rejected the offer as too low. On July 22, 2017, Mr. Robert authorised another firm of estate agents, VJR Agencies (VJR), to find a purchaser for the same price. On July 27,2017 MR. Mozart once again approached SPM with a view to further negotiations with the principal. SPM once again communicated with Mr. Robert but he refused to negotiate. Mr. Mozart subsequently saw the advertisement of VJR and approached them. Lengthy negotiations took place between Mr. Mozart and Mr. Robert through VJR. As a result of these negotiations a written contract of sale was entered into between the parties on August 12, 2017 providing for a purchase price of N$15.9 million. On discovering these facts, SPM sued Mr. Rolf Robert for commission on the sale.

Discuss fully the merits and demerits of SPM claim, with full reference to the law of agency.

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