Collen v Wright

A person who professes to act as an agent impliedly warrants that he has the authority he claims, and is liable for breach of warranty if he does not, even if he honestly believed he had it.

Citation
(1857) 8 E & B 647
Court
Court of Exchequer Chamber
Year
1857
Subject
Commercial Law
Topic
Agency

Facts

Mr Wright, acting as an agent for Mr Gardner, agreed to grant a lease of a farm to Mr Collen. Mr Wright honestly believed that he had authority to grant the lease, but he did not. When Mr Gardner refused to grant the lease, Mr Collen sued him for specific performance, but failed. He then sued Mr Wright's executors for damages.

Legal principle

The court held that Mr Wright's estate was liable. Willes J said that a person who induces another to contract with him as the agent of a third party, by an unqualified assertion of his being authorised to act as such agent, is answerable to the person who so contracts for any damages which he may sustain by reason of the assertion of authority being untrue. This is not a liability for deceit, but for breach of an implied contract or warranty that the agent has authority, so it applies even if the agent honestly believed that he had authority.

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This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.

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