district court logo

Consolidate Engineering Company Limited v Hub Street Equipment Pty Limited [2016] NZDC 6008

Published 03 November 2016

Agency — whether defendant was party to contract — Freeman & Lockyer v Buckhurst Park Properties [1964] 2 QB 480. The plaintiff was entitled to recover the amount claimed and interest from the defendant after a finding was made that the defendant was a party to the contract. The issue concerned whether the plaintiff might consider that the deal was entered into by Hub Street Pty in the circumstances where Hub Street NZ, a related company, had used a purchase order clearly referring to the defendant company. The court considered whether actual authority had been conferred or whether by its conduct the defendant company had permitted Hub Street NZ the authority to act as its agent. While the plaintiff did not discharge the onus of proving actual authority to bind the defendant company, ostensible authority arose when the defendant permitted its employees to represent that they had authority (Buckhurst Park Properties).

Tags