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28 Cards in this Set

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Mackenzie v Cluny Hill Hydropathic

Hotel manager barricaded guest in to solve dispute. There was an implied agency relationship here for the manager to deal with disputes on the hotel's behalf and was held to be holding against her will.


IMPLIED AUTHORITY

Hotel

Panorama Developments Ltd v Fidelis Furnishings Ltd

Where a secretary hired cars under company name then used them himself. He was acting within scope of employment and had implied authority that he could create contracts for the company.

Car hire

Keighley Maxsted & Co v Durrant

First condition to ratify an Agent's actions.


A must be working for an identifiable Principal and it must be made known to 3rd party that they are acting for P

Ratification

Morrison v Statter

A shepherd was instructed to oversee herd but the proceeded to buy sheep. This was outside his capacity and could not bind the principal for acting outside authority.

Sheep

Tinnevelly Sugar Refining Co v Mirrlees

Where an agent acted on behalf of a Principal to import machinery which was defective but at the time P was not a registered company. Could not increase the capacity by employing an agent.


Second and third conditions of ratification:


P must be aware of all relevant facts.


P must have capacity to act.

Not registered

Robert Barry & Co v Doyle

Creation of agency relationship expressly - it was held here that agency relationship could be created through oral agreement.

Creation of Agency

Partnership Act 1890 s.5

A partner is assumed to be an agent of the firm have authority to bind it and other partners.

Creation of agency

Grover Ltd v Matthews

Ratification 4th condition:


Must take place within any timescale specified, or if none then within a reasonable timescale

Ratification 4

Great Northern Railway Co. V. Swaffield

When a horse was transported but there was no one there to pick it up, emergency measures were taken which was held to be necessary in the circumstances and negotiorum gestio applied.

Horse on a train

Springer v Great Western Railway Co

When tomatoes were being transported and this was delayed, there was an opportunity to communicate with the plaintiff but this was not taken and therefore there was no netotiorum gestio and no agency of necessity arose.

Tomatoes

International Sponge Importers v Watt & Sons

Travelling salesman sold sponges for a company and was instructed to get cheques made out to company. Salesman got cheques made out to him which he pocketed but company unable to complain as it was held out that he had authority.

Sponges

Watteau v Fenwick

Even if something is expressly forbidden in an agreement, it can still bind the firm if the agent has apparent authority to the outside world. When cigars were sold to someone who was not paid, court held that there was implied authority granted even though outside scope of actual authority

Authority

Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd

Where architecture work gave rise to sue for unpaid fees. It was held the company was bound to pay, it was found there was apparent authority as there was knowledge on the behaviour going on and there was a clear representation.

Gilmour v Clark

When goods were redirected on a different ship for legitimate reasons, and this sunk, agent was liable even though it was well intentioned.


DUTY TO FOLLOW INSTRUCTIONS

Ship

Tyler v Logan

Shortfall of £62 in shoe shop. Manager was held liable as there was a duty to keep accounts

Shoe

Alexander Turnbull & Co Ltd v Cruickshank and Fairweather

The agent has duty to exercise due skill and care, here reasonable duty of care was breached due to lack of informing of fees to be paid.

Agent's duty

Fiduciary duty

The agent must act in good faith to the principal and disclose all relevant facts

Ronaldson v Drummond & Reid

Agent must not use their position for their own benefit - if A receives a discount for P's transaction, this must be passed on to P

Agents duty

Lothian v Jenolite

An agent has the duty to avoid conflicts of interest, but can still work with multiple Ps with similar interests.

Conflict of interest

Liverpool Victoria Friendly Society v Houston

Where someone worked for an insurance society and was able to see their client list, there were approaches made to people on the list after he had given it to a competing insurer after being dismissed. There was a duty not to disclose confidential information

Insurance list

De Bussche v Alt

There is a presumption against delegation of work to other agents. Agents have a duty to act personally

agent's duty

Mackersy's Executors v St Giles Cathedral Managing Board

Agent has the right to be remunerated for work if that work makes up part of their livelihood

Agent's rights

Stevenson & Sons v Duncan

Where the principal instructed the agent to sell shares they did not actually have, the agent was held liable but it was found that the principal must relieve agent of liabilities.

Shares principal don't have

Drummond v Muirhead and Smith

Right of lien for agents

Lien

Scott and Neill v Smith

In a dispute of an advance for cargo, the agents had special lien over this until they were repaid for their advance which relates to the debt owed.

Special lien

Stone & Rolfe Ltd v Kimber Coal Co Ltd

Where agent discloses there is a principal, the contract is between the principal and third party and agent has no part in the contract.

Disclosing the principal

Bennett v Inveresk Paper Co

Where principal is undisclosed, 3rd party can sue the agent. However, principal can sue 3rd party also.

Undisclosed principal

Anderson & Croall & Sons

Where agent exceeds actual and apparent authority, there is no contract and 3rd party may have title to sue the agent. Here was a situation of horse auction where the wrong horse was sold.

Exceeds actual and ostensible authority