The defendant was a director of a company. He signed a letter for the company promising to pay for goods ordered. The representation was found to have been made fraudulently because he knew the company was insolvent, and unable to pay. He now appealed a finding that he was personally responsible.
Held: The director’s appeal failed. The signature of the defendant on its own was sufficient. Lord Tenterden’s Act, the 1828 Act was ‘concerned with proving by evidence the existence of a representation. It was not concerned with excusing fraudulent behaviour or with differentiating between capacities in which persons put their names to documents. Having regard to the mischief at which the Act was aimed, I can see no reason why, if a document contains a fraudulent representation being made by a director for which that director would otherwise be held personally liable, his signature on the document will not suffice to comply with Lord Tenterden’s Act. ‘ The Act was not to be used to evade proper liability.
Judges:
Waller LJ VP, Rix LJ, Keene LJ
Citations:
[2007] EWCA Civ 1201, Times 08-Jan-2008, [2008] BCC 301, [2007] All ER (D) 293 (Nov)
Links:
Statutes:
Statute of Frauds (Amendment) Act 1828
Jurisdiction:
England and Wales
Citing:
Appeal from – Drouzhba v Wiseman and Another QBD 3-Nov-2006
. .
Cited – Standard Chartered Bank v Pakistan National Shipping Corporation, Standard Chartered Bank v Pakistan National Shipping Corporation and Others and Another and Others (Nos 2 and 4) HL 6-Nov-2002
Fraudulent Misrepresentation by Company Director
Fraudulent bills of lading had been issued in order to rely upon letters of credit issued by the bank. The director signing the bills sought to avoid personal liability, saying it was the Act of the company. The defendant company also appealed on . .
Cited – Lyde v Barnard CExC 1836
The question before the court was whether a misrepresentation, that a particular fund in which Lord Edward Thynne had a life interest was charged with only three annuities, was a representation relating to Lord Edward’s credit or ability within the . .
Cited – John Hudson v Oaten CA 19-Jun-1980
The plaintiff sought to avoid the 1828 Act (Lord Tenterden’s Act). Lakeview, had agreed to buy a substantial quantity of oil from them but was never in a position to do so. The plaintiffs sought their loss from the defendant, Mr. Oaten, and not . .
Cited by:
Cited – Lindsay v O’Loughnane QBD 18-Mar-2010
The claimant had purchased Euros through a foreign exchange dealer. The dealer company became insolvent, causing losses to the claimant, who sought to recover from the company’s managing director, the defendant, saying that he was aware of the . .
Cited – Lindsay v O’Loughnane QBD 18-Mar-2010
The claimant had purchased Euros through a foreign exchange dealer. The dealer company became insolvent, causing losses to the claimant, who sought to recover from the company’s managing director, the defendant, saying that he was aware of the . .
Lists of cited by and citing cases may be incomplete.
Torts – Other, Contract
Updated: 12 July 2022; Ref: scu.261451