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
  • 24 June 2026
  • Employment

What are employer’s obligations during a heatwave?

During the summer, employers can come across employee issues relating to the heat and hot weather. How can employers handle hot weather and what are employer obligations during a heatwave?

art
  • 23 June 2026
  • Employment

Pride month and employment law: Ensuring compliance with LGBTQ+ protections

With each Pride month, companies unveil rainbow logos and send office wide emails of solidarity. These gestures are valuable, giving visible demonstrations of support, but only really make a difference if those companies are able to truly say that their policies and practices are inclusive and legally compliant.

art
  • 22 June 2026
  • Commercial Real Estate

Do you need an EPC for lease renewals? Key insights for commercial property owners

When is an EPC required for leases? The non-domestic EPC guidance makes it clear that an EPC is not required on renewal. The Ministry for Housing, Communities and Local Government’s (MHCLG’s) “A guide to energy performance certificates for the construction, sale and let of non-dwellings: Improving the energy efficiency of our buildings”

Pub
  • 18 June 2026
  • Employment

Employment Rights Act 2025: Key Changes for Employers

Join Katie Glendinning and Lucy White for an on demand webinar as they break down the key changes introduced by the Employment Rights Act 2025, offering clear insights into what these reforms mean in practice for employers and HR professionals.

art
  • 18 June 2026
  • Corporate and M&A

Business sales and NDAs: Creating a safe space to open up your business

You have accepted an offer to sell your business, but taking an agreement in principle through to completion may involve the need to divulge your company’s private information – perhaps deep secrets which have given your business its competitive edge.  

art
  • 16 June 2026
  • Employment

Shaping the Future of Work: Insights from the 114th ILO International Labour Conference

Having recently returned from the 114th Session of the International Labour Conference in Geneva, I have been reflecting on the work of the International Labour Organisation (ILO) and the important role it plays in global standard setting, as well as promoting social and economic inclusivity.