Richards v. Bank of Nova Scotia

Richards v. Bank of Nova Scotia

Where an agent makes false representations outside the apparent scope of his authority to promote his own private ends, those representations are not attributable to the principal and the principal is not bound or charged with the agent's knowledge; constructive notice is limited to matters material to the transaction which the agent was under a duty to disclose.

Citation
(1896) 26 SCR 381
Parties
Appellant (defendant): William Richards; Respondent (plaintiff): The Bank of Nova Scotia
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
6 June 1896
Procedural Posture
Collection / Appeal to the Supreme Court of Canada From the Supreme Court of New Brunswick; Final Judgment on Appeal
Outcome
Appeal dismissed with costs; judgment of the Supreme Court of New Brunswick affirmed
Legal Topics
Agent Authority, Representation by Agent, Constructive Notice, Accommodation Bills, Imputation of Knowledge, Adoption of Agent Acts
Source Language
English
Agency Contract Banking Torts (fraud) Agent Authority Representation by Agent Constructive Notice Accommodation Bills +2 more

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Parties

William Richards

Appellant (defendant)

The Bank of Nova Scotia

Respondent (plaintiff)

Procedural Posture

Collection / Appeal to the Supreme Court of Canada From the Supreme Court of New Brunswick; Final Judgment on Appeal

Legal Issues

  1. 1 Whether a principal is bound by representations made by an agent acting outside the apparent scope of authority to advance the agent's private ends
  2. 2 Whether the principal is imputed with the agent's knowledge where the agent acted in fraud of the principal or for private advantage
  3. 3 Whether taking the benefit of an agent's procurement (acceptance of a bill) amounts to adoption of the agent's representations that would impose burdens on the principal

Ratio Decidendi

Where an agent makes false representations outside the apparent scope of his authority to promote his own private ends, those representations are not attributable to the principal and the principal is not bound or charged with the agent's knowledge; constructive notice is limited to matters material to the transaction which the agent was under a duty to disclose.

Court Disposition

Appeal dismissed with costs; judgment of the Supreme Court of New Brunswick affirmed

Orders

  • Appeal dismissed with costs.
  • Judgment of the Supreme Court of New Brunswick directing verdict for the plaintiff affirmed.