Watteau v Fenwick

An undisclosed principal was held liable for purchases made by his agent within the usual authority of an agent in that position, even though he had forbidden them.

Citation
[1893] 1 QB 346
Court
Queen's Bench Division
Year
1893
Subject
Commercial Law
Topic
Agency

Facts

Mr Humble managed a public house that was owned by Fenwick, a firm of brewers. The licence and the name over the door were in Mr Humble's name, so he appeared to be the owner. The brewers had forbidden him to buy cigars and some other goods on credit, which they would supply themselves. Mr Humble bought cigars on credit from Mr Watteau, who thought that Mr Humble was the owner and had never heard of the brewers. When Mr Watteau discovered that the brewers were the real owners, he sued them for the price.

Legal principle

The court held that the brewers were liable. Wills J said that the principal is liable for all the acts of the agent which are within the authority usually confided to an agent of that character, notwithstanding limitations put upon that authority as between the principal and the agent. Buying cigars was within the usual authority of a manager of a public house. The decision has been criticised, because Mr Watteau did not know of the principal, so he could not have relied on any appearance of authority, and it was doubted in later cases.

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