Gandell carried on business in two capacities: as clerk to Gandell and Co, of which his father was sole proprietor. He had no authority to contract. He was in partnership with Todd, as Gandell and Todd. He purported to conclude a contract to purchase cloth from the plaintiffs, holding himself out as a member of Gandell and Co. The first instalment of the cloth was delivered to the premises of Gandell and Co and the second instalment was collected in a cart owned by Gandell and Co. Edward Gandell took the cloth to the defendant and purported to pledge it to secure a loan to Gandell and Todd. The issue was whether in these circumstances any contract was concluded between the plaintiffs and Gandell and Todd, under which the property in the cloth passed to them. He became bankrupt. The court held that no contract had been concluded.
Pollock CB said: ‘ in this case I think it clear that there was no contract. Mr Hawkins contended that there was a contract personally with Edward Gandell, the individual with whom the conversations took place. It is true that the words were uttered by and to him, but the plaintiffs supposed that they were dealing with Gandell and Co., the packers, to whom they sent the goods; the fact being that Edward Gandell was not a member of that firm and had no authority to act as their agent. Therefore at no period of time were there two consenting minds to the same agreement.’
(1863) 1 H and C 803
Followed – Cundy v Lindsay HL 1878
Cundy was asked to pay the linen manufacturers Lindsay and Co for 250 dozen cambric handkerchiefs which he had acquired from a crook who had acquired them from Lindsay by pretending to be the respectable business firm of Blenkiron.
Held: A . .
Cited – Shogun Finance Limited v Hudson HL 19-Nov-2003
Thief acquired no title and could not sell
A purchaser used a stolen driving licence to obtain credit for and purchase a car. He then purported to sell it to the respondent, and then disappeared. The finance company sought return of the car.
Held: (Lords Nicholls and Millett . .
Lists of cited by and citing cases may be incomplete.
Updated: 12 May 2022; Ref: scu.188454