Case law

  • Case Details
    • National ID: 3-2-1-123-13
    • Member State: Estonia
    • Common Name:link
    • Decision type: Supreme court decision
    • Decision date: 13/11/2013
    • Court: Supreme Court
    • Subject:
    • Plaintiff: OÜ PRIDE GRUPP
    • Defendant: Paul Priit Lukka
    • Keywords: unfair terms
  • Directive Articles
    Unfair Contract Terms Directive, Article 2, (a) Unfair Contract Terms Directive, Article 3, 1. Unfair Contract Terms Directive, Article 4, 1. Unfair Contract Terms Directive, Article 4, 2.
  • Headnote
    A standard term in a brokerage contract that gives the broker a right to claim a brokerage fee, provided that the broker has presented the property to the client and the client has purchased the property, even if the client did not purchase the property as a result of the broker’s actions, cannot be considered a unreasonably harmful (unfair) standard term because it relates to the main subject matter of the contract, i.e. when the client has to pay for the services rendered to him/her.
  • Facts
    The plaintiff and the defendant were parties to a brokerage contract by which the plaintiff undertook an obligation to indicate different properties for the defendant to purchase.

    The plaintiff indicated several properties, including a specific property that became the object of the dispute. The plaintiff introduced the property to the defendant, explained the possible legal problems related to the purchase of this property and offered to sell the property to the defendant.

    After some time the plaintiff found out that the defendant had purchased the property, either through another broker or by himself.

    According to the brokerage contract signed between the parties, the broker has the right to a brokerage fee if the broker has presented the property to the client and the client buys the property during the term of the brokerage contract or 12 months after the termination of the brokerage contract.

    The plaintiff filed an action against the defendant, asking for the defendant to pay the brokerage fee.
  • Legal issue
    According to law, a standard term is not deemed to be unfair if it relates to the main subject matter of the contract or to the relationship between the price and the value of the services or goods supplied in exchange. The standard term in question determines the direct conditions for when the defendant is obligated to pay a brokerage fee to the plaintiff. This concerns the main subject matter of the contract, i.e. when the defendant has the duty to render a counter-performance to the plaintiff’s performance. Therefore the term in question cannot be considered an unfair standard term and its validity cannot be assessed in the context of it being a standard term.
  • Decision

    Is a term in a brokerage contract a unreasonably harmful (unfair) standard term if it gives the broker a right to claim a brokerage fee provided that the broker has presented the property to the client and the client has purchased the property, even if the client did not purchase the property as a result of the broker’s actions?

    URL: N/A

    Full text: Full text

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  • Result
    The court referred the matter back to the second instance court for a new hearing.