The claimant carried on business as business transfer agents and
agreed, for a fee, to find a buyer for the defendant's
business. A dispute arose, the defendant failed to pay the balance
of the fee due, and the claimant issued proceedings for recovery.
The defendant contended that the agreement was not enforceable for
illegality, on the basis that:
- The claimant's activities fell
within the definition of "estate agency work" in s.1(1)
of the Estate Agents Act 1979
- The claimant therefore fell within
the remit of the Money Laundering Regulations 2007 ("the
Regulations")
- In breach of the Regulations, the
claimant was not registered with the OFT
The court dismissed both the claim and counterclaim. Whilst the
claimant's failure to register with the OFT did not indicate
dishonesty or turpitude (and the OFT plainly took the same view, as
it had not sought to impose any civil penalty on, or to prosecute,
the claimant), so as to render the contract void for
