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
  • 18 August 2026
  • Immigration

Home Office curtailment of Sponsored Workers’ permission: Why employers and employees must act quickly

The Home Office has recently changed the speed at which it processes sponsor notifications following the end of a sponsored worker’s employment.

art
  • 13 August 2026
  • Employment

ACAS Draft New Code on Disciplinary and Grievance Procedures

ACAS have published a draft Code on 30 July 2026, which will replace the 2015 ACAS Code on disciplinary and grievance procedures when the Code is finalised at the end of September 2026.

art
  • 12 August 2026
  • Corporate and M&A

EMIs – April 2026 changes explained

On 6 April 2026 the Enterprise Management Incentive scheme (EMI) was expanded to make EMIs accessible to a wider range of businesses.

art
  • 06 August 2026
  • Privacy and Data Protection

The rise of the AI-powered individual: Is your business ready?

Artificial intelligence is changing the data protection landscape, but perhaps not in the way many organisations expected. Much of the discussion has centred on businesses adopting AI and ensuring they comply with the UK GDPR.

Pub
  • 06 August 2026
  • Employment

Employment law changes in 2026: What you need to know

With ongoing changes to UK employment law, staying updated is more challenging than ever. Join Monica Atwal and Harry Berryman for a live webinar covering 2026 HR changes and key employment law updates on Thursday 17 September.

Pub
  • 04 August 2026
  • Employment

From Opportunity to Employment: Building Inclusive Workplaces Together | Hosted by Breakthrough Supported Employment

Join Breakthrough Supported Employment for a live seminar on building inclusive workplaces at Malmaison Reading. Clarkslegal’s Lucy White will speak alongside industry experts, sharing insights on fostering diversity and creating equitable opportunities.