Page:Halsbury Laws of England v1 1907.pdf/378

 — Agency.

156 Sect,

2.

Appoint-

ment by Deed.

Urban authorities.

Trading corporations.

mentioned {b). Nevertheless a corporation is liable to a third party induced to enter into a contract with one whom the corporation has allowed to hold himself out as their agent (c). 341. Every appointment of an agent by a local board or urban sanitary authority involving a contract of the value of £50 must be in writing and sealed with the common seal (d). As regards these corporations, therefore, this settles the question as to what are to be considered contracts of trifling importance or of necessity (e). This is a mandatory enactment designed to protect the interests of the ratepayers, and cannot be overcome by any consideration of the contract being executed on one side (/").

342. The cases of trading corporations (^/) and joint-stock companies (Ji) afford important exceptions to the general rule that corporations must contract under their common seal, in that they may by agents enter informally into all contracts which are in furtherance of the objects of their incorporation. They may, therefore, appoint a^ients by parol to enter into all such contracts. Special exceptions may also exist under freedom granted by general or private Acts of Parliament as in the case of industrial and provident societies {i).

Sect.

by

land.

to

Informal Appointment.

343. The foregoing are the only legal requirements for the formal appointment of an agent. However desirable it may be that the appointment of certain kinds of agents, e.g., solicitors, should be in writing, so that the fact of agency and extent of the authority should be thus clearly ascertainable, the law does not require

parol.

Agent

3.

buy

formal evidence {k). Nor is writing necessary in the case of an appointment of an agent to purchase land, although contracts relating to land are not enforceable unless evidenced by writing (/). An agreement relating to land may be signed either by the party Hunt V. Whnhledon Local Board (1878), 4 C. P. D. 48. Faviell v. Eastern Counties Bail. Co. (1848), 2 Exch. 344, where a submission to arbitration by an attorney not appointed under seal was held binding on the (h) (c)

defendants.

Public Health Act, 1875 (38 & 39 Vict. c. 55), s. 174. V. Wirnhhdon Local Board, sujjra, where a surveyor was unable to recover for plans ordered by the Board not under seal. (/) Young v. Mayor of Boyal Leamington Spa (1883), 8 App. Cas. 517. affirmed {g) South of Ireland Colliery Co. v. Waddle (1868), L. E. 3 0. P. 463 (1869), L. E. 4 C. P. 617 Henderson v. Australian Boyal Mail Steam Navigation Co. (1855), 5 E. & P. 409. (A) Companies Acts, 1862 1907. See Companies Clauses Act, 1845 (8 & 9 (d) (e)

Hunt





—

Yict. (i)

c.

16), s. 97



title

Companies.

& 40 Yict. c. 45), s. 11 (12) B. v. Justices L. 431; see title Industrial Phovident and

Industrial Societies Act, 1876 (39

of Cumherland (1848), 5 D. Similar Societies.

&



Given V. Ord (1828), 3 C. & P. 349 Lord v. Kellett (1833), 2 My. &_E:. Wiggins Y. Peppin (1837), 2 Beav. 403. But the onus lies upon a solicitor of proving his appointment {Maries v. Maries (1853), 23 L. J. (CH.) 154; Be Manhy (1857), 26 L. J. (cH.) 313 John Griffiths Cycle Corporation, Ltd. V. Humber & Co., Ltd., [1899] 2 Q. B. 414). (/) Statute of Frauds (29 Car. 2, c. 3), s. 4. For forms of appointment, see Encyclopaedia of Eorms, Vol. I., pp. 380 et seq. {k)

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