Search

How can we help?

Icon

Before you sign on behalf of your partner…

In the recent case of Marlbray Ltd v Laditi and another [2016] EWCA Civ 476, the Court of Appeal decided that a contract signed by a buyer on behalf of himself and his wife without her authority was valid.

The husband (H) and wife (W) attended a developer’s sales fair, but W spent most of the day outside of the sales fair looking after the couple’ children. Whilst at the sales fair, H retained one of the law firms attending the fair and signed a contract naming himself and his wife as joint purchasers. H paid a reservation deposit as well as a further deposit of 25% of the purchase price and contracts were exchanged. Despite this, the couple could not raise the remaining balance of the purchase price, resulting in the developer rescinding the contract and forfeiting the deposit.

A judge found that the contract was not ‘valid and enforceable’ because W had paid little attention to the fair’s events, had not instructed the solicitors, signed the contract nor authorised her husband to sign it on her behalf, and had not subsequently ratified the contract. The trial judge, relying on the case of Suleman v Shahsavai [1988] 1 WLR 1181, found that there could be no binding contract as H had no authority to sign on behalf of W.

On appeal by the developer, the Court of Appeal found that there was a valid and enforceable contract between the developer and H. The Court of Appeal distinguished this case from Suleman on the basis that joint owners could not act alone or sell the property individually.  Whereas, in this case, the contract H signed provided that ‘where two or more persons constitute the Purchasers all obligations contained in this Agreement on the part of the Purchaser shall be joint and several obligations on the part of such persons’. There was no reason why H should not be contractually bound by his several obligations.

Additionally, there was no evidence that H had executed the contract conditional upon W being a joint purchaser, so a binding contract could still arise between the developer and H, even if it was intended that W would also be a party to the contract.

The Court of Appeal also dismissed H and W’s argument that the contract did not comply with section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 which provides that a contract for the sale of an interest must be signed ‘by or on behalf of each party’. It did not affect H’s several obligations under the contract just because W’s joint obligations were not enforceable.

Chambers and Partners

The Clarkslegal team are commercial and good to work with. They get what our business needs and tell me what I need to hear.

This case highlights that law firms should always ensure they have obtained clear instructions from all of their clients.  Equally, where there are two or more purchasers involved in a transaction, no purchaser should assume they have the authority to bind the other. All purchasers will need to be consulted unless specific authorisation has been given to permit one purchaser to act on behalf of another. This can apply to couples, as demonstrated in the case above, but also business partners who are in the process of purchasing a commercial property.

Disclaimer

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

About this article

Read, listen and watch our latest insights

art
  • 02 April 2026
  • Commercial Real Estate

Can I have access to a neighbour’s land to carry out works to my property?

As a landowner, maintaining and repairing your property is important. It may be the case that to do so, you will need to access the land of a neighbour.

art
  • 01 April 2026
  • Privacy and Data Protection

Recognising DSARs: top tips for organisations

The UK GDPR grants Data Subjects, who are the individuals to whom the personal data relates, rights over their personal data, including the rights of access, correction and erasure.

art
  • 30 March 2026
  • Employment

Legislative Changes – What Employers Need to Know for April 2026

With the phased implementation of the Employment Rights Act 2025 (ERA), alongside other legislative updates, April 2026 brings a wide range of important changes for employers.

Pub
  • 27 March 2026
  • Corporate and M&A

Shareholder Disputes: What to do when disputes arise – Episode 4

Join Stuart Mullins and Jack Hobbs for episode four of our Shareholder Disputes podcast series as they confront the realities of shareholder fallouts and share practical strategies for managing these complex situations.

art
  • 24 March 2026
  • Immigration

Spouse Visa – Is your relationship genuine and subsisting?

For years many couples have become frustrated by the requirements for a spouse visa as the rules and guidance are difficult to understand. A significant amount of applications are rejected on the basis of the applicant not providing the adequate documents to evidence the relationship requirement.

art
  • 20 March 2026
  • Corporate and M&A

Drag-Along & Tag-Along Rights: Why Every Company Needs Them

When starting a company, very few founders are aware of the potential issues around shares, share ownership and the implications of that when selling their company.