Agency Flashcards
Watteau v Fenwick
Firm of Brewers who applied a manager to run the business. He was explicitly forbidden from ordering certain items for the business which the defendants were to order. He did. Firm of Brewers held liable given manager had implied authority given character of his position.
Morrison v Statter
Shepherd allowed to purchase sheep under special instructions. On one occasion he paid too much after only being authorised a certain maximum. Held, he had no authority to do so.
‘Where a particular agent employed by a principal to a particular piece of business for him, he must act within the instructions given for the particular occasion, and does not bind his principal if he acts otherwise’
Barneston v Petersen
Incidental implied authority.
Shipbrokers hired to do ship owners businesses. Shipbrokers accordingly rendered services. Ship owners disputed payment of outlays. Held ghT shipbroker had implied authority to do all that was necessary to carry out the ship owners business.
Mackenzie v Cluny Hill Hydro
Hotel manager locks wifey in office until she apologises to other customer. Held that someone in managerial position would be assumed to have the authority to deal with customer complaints.
Panorama Developments v Fidelis Furnishings
Company secretary signed for cars - with the company footing the bill. Held that she had implied authority to hire cars.
Hely-Hutchison v Brayhead Ltd
Lord Denning ‘the authority of an agent as it appears to others’
APPARENT AUTHORITY
International Sponge Importers v Watt & Sons
Notices on invoices did not explicitly state that payments could not be made to travelling salesman who accepted cheques addressed to himself.
‘The payments to the traveller were valid as against the appellants, for the notices in the statements of account did not contain a sufficient intimation to their customers that the traveller was not authorised to receive payment for goods delivered in cash or in a cheque in his favour.’
Bolton v Lambert
RATIFICATION
An offer to purchase was made by the defendant to S, who was the agent of the plaintiffs but was not authorised to make any contract for sale. The offer was accepted by S on behalf of the plaintiffs. The defendant withdrew his offer and after the withdrawal the plaintiffs ratified the acceptance of the offer by S. In an action by the plaintiffs for specific performance it was held that the withdrawal of the offer by the defendants was inoperative and the plaintiffs were entitled to specific performance.
Dubai Aluminium v Salamaan
Vicarious liability
‘For F to be held vicariously liable for A’s actions it was to be determined whether his wrongful conduct could fairly and properly be regarded as having been done on the ordinary course of the firms business, Lister v Hesley Hall was applied. This conclusion was a question of law based on primary facts and, given the express pleading that F had been acting in his capacity as partner, it was held that the drafting of documents had been in the ordinary course of F’s business.’
Gilmour v Clark
Agent put goods on the wrong ship. Held, he was liable for the price of the goods having failed to follow the principals instructions.
Duty of an agent to the principal to follow instructions.
Graham and Co v. United Turkey Red Co
Agent hired to sell principals product. Term of the contract stipulated that agent could not sell the products of another company. The agent sold for another company alongside the principal and claimed payment from the principals for this period. Held, that the agent was not entitled to payment given his breach of contract i.e. failed to follow the principals instructions.
DUTY TO FOLLOW INSTRUCTIONS
James Fearn v Gordon & Craig
It is the duty of an agent who is employed to prepare a conveyance to heritage to make a search for incumbrances. If the agent has failed in his duty and the client is evicted, the agent is liable in damages.
DUTY TO EXERCISE DUE CARE AND SKILL
To exercise due skill and care:
What level of care?
The skill of a prudent man in ms ageing his own affairs - Bell
Duty to exercise due care and skill
Cooke v. Falconers Reps
Where the agent is a professional person, his duty is that of a reasonable competent and careful member of that profession.
Trans Barvil Agencies v. John S. Baird
Duty to account to the principal
In particular to prevent secret profits.
