A director of a company who negotiated a purchase by the company for pounds 20,000 of a property was promised but did not receive pounds 3,000 out of the pounds 20,000 from the vendor.
Held: The contract was to be treated as having been entered into for the benefit of the purchaser without proof of fraud. The vendor was liable to the company for the pounds 3,000, because the company was entitled to treat the contract between the vendor and the director as made by the director on behalf of the company. Bowen J held that it ‘could not be successfully denied’ that if the pounds 3,000 had been paid to the director he would have held it on trust for the company.
Bowen J
(1879) 5 QBD 109, [1879] UKLawRpKQB 4
Commonlii
England and Wales
Equity, Contract
Updated: 18 January 2022; Ref: scu.551510