Galbraith and Grant Ltd v Block: KBD 1922

Where under a contract the seller of goods is required to deliver them at the buyer’s premises he fulfils his obligation if he delivers them there to a person who apparently has authority to receive them, taking care to see that no unauthorized person receives them. If therefore the goods are received by an apparently respectable person, who has obtained access to the buyer’s premises, and who signs for the goods in the buyer’s absence and misappropriates them, the loss must fall on the buyer and not on the carrier or seller: ‘A vendor who is told to deliver goods at the purchaser’s premises discharges his obligations if he delivers them there without negligence to a person apparently having authority to receive them. He cannot know what authority the actual recipient has. His duty is to deliver the goods at the proper place, and, of course, to take all proper care to see that no unauthorized person receives them. He is under no obligation to do more. If the purchaser has been unfortunate enough to have had access to his premises obtained by some apparently respectable person who takes his goods and signs for them in his absence, the loss must fall on him, and not on the innocent carrier or vendor.’

Judges:

Lush J

Citations:

[1922] 2 KB 155

Cited by:

CitedComputer 2000 Distribution Ltd and others v ICM Computer Solutions Plc CA 17-Nov-2004
The claimant delivered computer equipment against a fraudulent invoice issued in the name of the defendant.
Held: The loss here had to fall on an innocent party. Having delivered the equipment to the site requested, the claimant had done all . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 30 April 2022; Ref: scu.220646