Agency Flashcards
Morris v Statter
Special Agent/ Implied Authority -
Shepherd bought sheep without having the authority to do so; the farmer was therefore not liable. No additional scope of authority as he was a special agent.
Mackenzie v Cluny Hill Hydropathic Co 1908
Implied Authority -
The Spa was liable for the manager’s actions as he was an agent of the owners.
Panorama Developments Ltd v Fidelis Furnishing Ltd 1971
Implied Authority -
The court held that the company should pay for the cars as the secretary had the authority to hire cars. This is the only way the third party could claim the money owed.
Keighley Maxsted & Co v Durrant 1901
Identifiable Principal -
The agent did not disclose there was a principal and so when the delivery was made - along with a higher price - the principal refused to pay. This was allowed as the principal was never referred to.
Undisclosed actions by the agent cannot be ratified.
Tinnevelly Sugar Refining Co Ltd v Mirrlees, Watson & Yaryan Co Ltd 1894
Competent Principal -
The principal was not formed yet therefore, the actions of the appointed agent were invalid.
Grover Ltd v Mathews 1910
Reasonable Ratification Period -
The principal ratified the agents action’s after a fire burned down the premises. This was deemed by the court not to have been within a reasonable time period.
Gilmour v Clark 1853
Obey P’s Instructions -
Principal instructed the Agent to put the goods on one ship; then the Agent’s servant put the goods on another which sank. The Agent was liable for these actions.
Graham and Co v United Turkey Red Co Ltd 1922
Obey P’s Instructions -
Cannot sue for a breach of contract if you have not fulfilled the contract.
The agent has a duty to follow instructions.
Cooke v Falconers Representatives 1850
Due Skill and Care -
Where the agent is a professional person, his duty is that of a reasonable, competent and careful ember of that profession.
Lord Fullerton
Huntingdon Cooper and Sulphur Co Ltd v Henderson 1877
Relationship of Good Faith -
“If the agent and the third party colluded to defraud the principal, then the principal could rescind the contract between himself and the third party”. Lord Young
Bell’s Principal on a Fiduciary Relationship
“An agent is bound to maintain the most entire good faith, and make the fullest disclosure of all facts and circumstances concerning the principal’s business”
Robertson v Drummond and Reid 1881
A must not use their position for their own benefit -
Any benefit given must be transferred to the client.
McPherson Trustee v Watt 1877
A must not have personal interest conflicts -
Watt sold 4 properties on behalf of the trustees. Selling to his brother to then sell on at a discounted price. This case highlights you must be honest in your transactions.
Liverpool Victoria Friendly Society v Houston 1900
Cannot disclose confidential information -
4 years after Houston worked for LV he then disclosed their customer list. Tried to argue he was no longer an agent but this was not allowed.
De Bussche v Alt 1878
Delegation of A’s Duties -
Court held there was no breach of duty by agent in appointing a sub-agent as delegation was expressly agreed. Where the sub-agent fails in their duties then the agent can be liable.
Mackersy’s Executors v St Giles Cathedral Managing Board 1904
Agent is entitled to payment -
Rebuttable presumption that the agent is entitled to payment for work if the work is part of the agent’s livelihood.
Drummond v Muirhead & Smith 1900
Right of Lien -
Looked after an estate where the party were bankrupt. The drafted deeds were retained until payment was made. The court held this was allowed.
Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd 1964
Actual authority-
“…a legal relationship between the principal and agent created by a consensual agreement to which they alone are parties”. Lord Diplock
Lord Diplock on Apparent Authority
Apparent authority -
“a legal relationship between the principal and the contractor [i.e. a third party] created by representation, made by the principal to the [third party]”.
Lord Denning on Express Authority
“Authority given by express words”.
Watteau v Fenwick 1893
Implied Authority -
An undisclosed principal can be held liable for the actions of an agent who is acting with an authority that is reasonable for a person in the agent’s position regardless of whether the agent has the actual authority to do so.
International Sponge Importers Ltd v Watt and Sons 1911
Implied Authority -
Salesman took cheques made payable to himself. The court held these payments were valid as the third party had no reason to suspect that they were invalid.
Bolton Partners Ltd v Lambert 1889
Ratification of an Agent’s Acts -
Held: Retrospective ratification is possible even where the other contracting party has attempted to avoid the contract.
Stewart v Shannessy 1900
Agent’s ability to bind the principal -
Presumption that a personal signature if legally binding.
