Letter before action secures commission

Our client was an agent who worked for commission in relation to property sales. He had entered into a contract with the other party, which stipulated that he would receive a commission for introducing a purchaser to them. A purchaser was sourced and referred by our client, and the property was accordingly sold by the other party. Our client however was not paid his commission as required under the contract. The approximate sum due to our client was £4,000. Additionally, the other party had also failed to inform and serve notice on our client that they had terminated the Terms of Business.

We submitted representations on behalf of our client by issuing a Letter Before Action (LBA) to the other party. The LBA set out the facts of the case and required the other party to either negotiate a settlement that included interest at 8% pursuant to Section 69 of the County Court Act 1969, or face legal action. The other party was prompted by the LBA to settle the matter in our client’s favour, and costly court proceedings were avoided on both sides.