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Flashcards in 5: Agency Deck (10)
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1

Great Northern Railway Co. v. Swaffield (1874)

(Agency by Necessity, Law of Agency)

- the railway company, through no fault of its own, was unable to deliver a horse which had been consigned by rail and was unable to contact the owner for instructions.

- the company paid for the horse to be stabled and was held entitled to recover the costs from the owner, since the money had been expended on the owners behalf.

2

Kelner v. Baxter (1866)

(Agency by Ratification, Law of Agency)

- the promoters of a company bought goods on its behalf before it was incorporated.

- Once it was formed the company purported to ratify the purchases, but was held not entitled to do so.

3

Chaudhry v. Prabhakar (1988)

(Care and Skill, Duties of an Agent)

- an apparently knowledgeable car enthusiast advised a friend to purchase a second hand car which turned out to be a worthless insurance write off.

- He acted as her agent advising the purchase and was held have failed to exercise proper care and skill.

4

Lucifero v. Castel (1887)

(Good Faith, Duties of an Agent)

- principal engaged an agent to buy a yacht for him. The agent found a yacht, bought it himself and then tried to sell it to the principal for a higher price.

- the court held that the principal was required to pay no more than the amount which the agent himself had paid for the boat.

5

Keppel v. Wheeler (1927)

(Full Disclosure, Good Faith, Duties of an Agent)

- an estate agent who had been engaged to sell the principal's house allowed the latter to accept an offer of £6,150 and failed to inform him of a higher offer of £6,750.

- the seller recovered £600 in damages from the estate agent, which was the difference between the offers.

6

Hippisley v. Knee Brothers (1927)

(Secret Profit, Good Faith, Duties of an Agent)

- advertising agent who obtained trade discounts from printers was held liable for failing to pass on this benefit to his principal.

- he had charged the principal the full price for the work and kept the amount of the discount for himself.

7

Watteau v. Fenwick (1893)

(Validly Appointed Agent with Restricted Authority, Apparent Authority, Authority of Agents)

- defendant appoints a manager of his public house. Licence for it was taken out in managers name (Mr Humble) which appeared over the door.

- manager buys cigars on credit from Watteau. Manager would usually have authority to do this, except Fenwick had forbidden him to do this.

- Watteau successful in claim against Fenwick as he was unaware of knowledge of restricted authority.

8

Panorama Developments (Guildford) Ltd v. Fidelis Furnishing Fabrics (1971)

(Validly Appointed Agent with Restricted Authority, Apparent Authority, Authority of Agents)

- a company secretary hired cars in the company's name but used them for his own purposes.

- the company had to pay the bill because hiring the cars within the usual authority of a person holding the position of company secretary.

- the hire company could not have known that he was abusing his position.

9

Freeman and Lockyer v. Buckhurst Park Properties Ltd (1964)

(Apparent Agent who has never been appointed, Apparent Authority, Authority of Agents)

- board of Buckhurst allowed on member, K, to act as if he were managing director, although he had never been appointed.

- the board had previously honoured contracts made by K but in this case claimed not to be bound by a contract made with the claimants.

- court held that Buckhurst were estopped (prevented) from denying that K was managing director and that it was within the usual authority of a managing director to make such contracts.

- the contract was therefore binding.

10

Freeman and Lockyer v. Buckhurst Park Properties Ltd (1964)

(Apparent Agent who has never been appointed, Apparent Authority, Authority of Agents)

- board of Buckhurst allowed on member, K, to act as if he were managing director, although he had never been appointed.

- the board had previously honoured contracts made by K but in this case claimed not to be bound by a contract made with the claimants.

- court held that Buckhurst were estopped (prevented) from denying that K was managing director and that it was within the usual authority of a managing director.

- the contract was therefore binding.