Rights of Agent/Duties of Principal Flashcards
What are the facts of Mackersy’s Executors v St Giles Catherdral Management Board?
The executors of a man who had acted gratuitously as a secretary and treasurer to the defenders for 11 years sued the defenders, arguing quantum meruit (reasonable money for work done). The Court of Session (both Outer and Inner House) favoured the defender on the facts,
What are the facts of Glendinning v Hope and what part of agency law does it illustrate?
In Glendinning v Hope an Edinburgh firm of stockbrokers was held by the House of Lords to have the right of general lien over an uncompleted share transfer that could be held until their client satisfied a claim arising from a different transaction.
This illustrates the right to lien and security.
What occurred Drummond v Muirhead & Smith?
This case concerned whether law agents could exercise general lien over title deeds.
What are the facts of Stewart v Shannessy?
The agent was a sales manager for two companies. He wished to appoint a sub-agent. In confirming the appointment of the sub-agent, he wrote on company headed note paper but used his own personal signature and failing to use on “behalf on”. Court held the fact he had used headed note paper did not rebut the presumption implied by the use of a personal signature. Therefore, he was personally liable for the employment of a sub-agent.
What rule is derived from Kimber Coal Co Ltd with regards to the principal being disclosed but not named?
General rule is that if the principal is disclosed but not named then the contract between the principal and the third party should incur no personal liability.
In what case were some of the exceptions to the rule in Kimber Coal Co ltd demonstrated?
Stirling Park and Co v Digby Brown.
What happened in Stirling Park and Co v Digby Brown?
A firm of solicitors argued that it should not pay the sheriff officer’s fees for enforcing payment for a client and that the client (the principal) should pay. Court disagreed – held that it was normal practice for solicitors to pay sheriff officer’s fees and that solicitor should not have instructed sheriff if it was known client could not pay fees.
Which two cases are used to show the fact that there is no clear rule for what happens when the principal is disclosed but not named?
Ferrier v Dodds and Lamont Nisbett and Co v Hamilton.
What occurred in Ferrier v Dodds?
the buyer of a horse at auction wished to return the horse because it was not in good health as it should have been. The buyer found the name of the seller and returned the horse to him. Buyer then raised actions against the agent and the principal. Court held that the returning of the horse had the implied effect of him electing the principal to sue. Case dismissed against agent.
What occurred in Lamont Nisbett and Co v Hamilton?
the agent was the manager of a ship. Part of his duty was to ensure the ship was insured. The court held that in the process of dealing with the agent the insurance brokers had taken the agents as their contracting party, not the real owner of the ship. Credit has been given to the agent and not the unnamed principal. The third party here could not hold the principal personally liable for the non-payment on behalf of the agent.
