Franco-Canadian Mortgage Co. v. Greig

Franco-Canadian Mortgage Co. v. Greig

Majority held that Cassels, insofar as he agreed to purchase the land excluding mines and minerals, acted beyond the scope of his authority; the vendors' conduct in treating the contract as excluding the minerals constituted repudiation of their obligation to convey good title and entitled the purchasers to rescind and recover payments; appellants could not avoid restitution by asserting they were agents.

Citation
(1917) 55 SCR 395
Parties
Defendant/appellant: Franco-Canadian Mortgage Company; Plaintiff/respondent: R. B. Greig; Plaintiff/respondent: T. E. Thirl-Away
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
19 February 1917
Procedural Posture
Contract – Sale of Land; Agency Dispute / Appeal to the Supreme Court of Canada (final Judgment)
Outcome
Appeal dismissed with costs
Legal Topics
Ostensible Authority, Rescission, Vendor's Obligation to Convey Title, Scope of Agent's Authority, Recovery of Payments
Source Language
English
Agency Contract Property Equity Ostensible Authority Rescission Vendor's Obligation to Convey Title Scope of Agent's Authority +1 more

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Parties

Franco-Canadian Mortgage Company

Defendant/appellant

R. B. Greig

Plaintiff/respondent

T. E. Thirl-Away

Plaintiff/respondent

Procedural Posture

Contract – Sale of Land; Agency Dispute / Appeal to the Supreme Court of Canada (final Judgment)

Legal Issues

  1. 1 Whether the agent Cassels exceeded his authority by agreeing to exclude mines and minerals from the sale
  2. 2 Whether the vendors' conduct amounted to a repudiation of the contract permitting rescission
  3. 3 Whether appellants could retain or avoid refunding payments by asserting they were agents for the beneficial owners

Ratio Decidendi

Majority held that Cassels, insofar as he agreed to purchase the land excluding mines and minerals, acted beyond the scope of his authority; the vendors' conduct in treating the contract as excluding the minerals constituted repudiation of their obligation to convey good title and entitled the purchasers to rescind and recover payments; appellants could not avoid restitution by asserting they were agents.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs
  • Respondents' rescission of the contract upheld and respondents entitled to recover amounts paid under the agreement