BREMNER v SINCLAIR [1998] NSWCA 276

BREMNER v SINCLAIR [1998] NSWCA 276

The authority given to Mr McAllister included instructions to bid up to $960,000 if necessary; Mrs Murphy's bid was covered by those instructions, making it validly authorised, and consequently the auctioneer's authority to sign the contract was properly activated. Accordingly, the judgment against the auctioneer and agent is set aside and judgment entered in their favour.

Parties
Plaintiffs: Mr and Mrs Sinclair; First Defendants: Mr and Mrs Hudson; Second Defendant: Mr Bremner; Third Defendant: Elders IXL Ltd (later Fosters' Brewing Group Ltd)
Jurisdiction
Australia
Judgment Date
03 November 1998
Procedural Posture
Appeal / Court of Appeal Decision
Outcome
Appeal allowed in part; judgment and orders against auctioneer and agent set aside; judgment for auctioneer and agent with costs at first instance; no order as to costs of appeal between appellants and first respondents; appellants to pay second respondents' costs of the appeal.
Legal Topics
Authority of Agents, Ratification of Agent Acts, Delegation of Authority, Warranty of Authority, Negligence in Agency, Auction Sale Contracts
Agency Law Contract Law Authority of Agents Ratification of Agent Acts Delegation of Authority Warranty of Authority Negligence in Agency Auction Sale Contracts

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Parties

Mr and Mrs Sinclair

Plaintiffs

Mr and Mrs Hudson

First Defendants

Mr Bremner

Second Defendant

Elders IXL Ltd (later Fosters' Brewing Group Ltd)

Third Defendant

Procedural Posture

Appeal / Court of Appeal Decision

Legal Issues

  1. 1 Whether Mrs Murphy was authorised to make the auction bid for Mr and Mrs Hudson
  2. 2 Whether Mr McAllister was authorised to delegate bidding tasks to Mrs Murphy
  3. 3 Whether Mr and Mrs Hudson ratified the winning bid made by Mrs Murphy

Ratio Decidendi

The authority given to Mr McAllister included instructions to bid up to $960,000 if necessary; Mrs Murphy's bid was covered by those instructions, making it validly authorised, and consequently the auctioneer's authority to sign the contract was properly activated. Accordingly, the judgment against the auctioneer and agent is set aside and judgment entered in their favour.

Court Disposition

Appeal allowed in part; judgment and orders against auctioneer and agent set aside; judgment for auctioneer and agent with costs at first instance; no order as to costs of appeal between appellants and first respondents; appellants to pay second respondents' costs of the appeal.

Orders

  • Appeal allowed in part.
  • Set aside the judgment and orders made against the second and third defendants on 1 September 1995 and 14 September 1995.