Bonnie v. Aero Tool Works Ltd.

Bonnie v. Aero Tool Works Ltd.

The appellant effected a binding contract of purchase with Runbaken; the requirement of an 'official order' did not create a condition precedent to formation of the contract; because the appellant did all he agreed and the respondent's refusal to proceed prevented deliveries, the appellant is entitled to damages equal to the commission he would have earned; therefore judgment for appellant for $18,121.90.

Citation
[1952] 1 SCR 495
Parties
Appellant / Plaintiff: Joe J. Bonnie; Respondent / Defendant: Aero Tool Works Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
5 February 1952
Procedural Posture
Civil Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario; Judgment Below Dismissed the Action
Outcome
Appeal allowed with costs throughout; judgment entered for appellant
Legal Topics
Commission, Authority of Agent, Formation of Contract, Condition Precedent ('official Order'), Measure of Damages
Source Language
English
Agency Contract Law Damages Commission Authority of Agent Formation of Contract Condition Precedent ('official Order') Measure of Damages

Case Brief

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Parties

Joe J. Bonnie

Appellant / Plaintiff

Aero Tool Works Ltd.

Respondent / Defendant

Procedural Posture

Civil Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario; Judgment Below Dismissed the Action

Legal Issues

  1. 1 Whether appellant effected a binding contract of purchase between respondent and Runbaken
  2. 2 Whether the term 'official order' was a condition precedent to formation of contract
  3. 3 Whether appellant earned commission under the agency agreement despite no deliveries

Ratio Decidendi

The appellant effected a binding contract of purchase with Runbaken; the requirement of an 'official order' did not create a condition precedent to formation of the contract; because the appellant did all he agreed and the respondent's refusal to proceed prevented deliveries, the appellant is entitled to damages equal to the commission he would have earned; therefore judgment for appellant for $18,121.90.

Court Disposition

Appeal allowed with costs throughout; judgment entered for appellant

Orders

  • Appeal allowed with costs throughout
  • Judgment entered for the appellant for $18,121.90