Canada Central Railway Co. v. Murray

Canada Central Railway Co. v. Murray

Where a trading corporation has received the benefit of work and there is evidence that a person acted and was held out as its agent or that the corporation adopted or ratified the contract (acts such as supplying cars, making payments, and allowing manager to act), the question of authority and ratification is properly a jury question; a corporation can be bound by a contract not under seal; on the facts the jury verdict for the respondents was supported and the appeal must be dismissed.

Citation
(1883) 8 SCR 313
Parties
Appellant/plaintiff: Canada Central Railway Co.; Respondent/defendant: Thomas Murray; Respondent/defendant: William Murray
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
1 May 1883
Procedural Posture
Civil Appeal (contract/assumpsit) / On Appeal to the Supreme Court of Canada (final Appellate Decision)
Outcome
Appeal dismissed; judgment for respondents affirmed
Legal Topics
Ratification, Authority of Agent/ostensible Authority, Common Counts/assumpsit, Construction of Memorandum of Agreement, Liability for Work Performed
Source Language
English
Contract Agency Corporations Equity Civil Procedure Ratification Authority of Agent/ostensible Authority Common Counts/assumpsit +2 more

Case Brief

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Parties

Canada Central Railway Co.

Appellant/plaintiff

Thomas Murray

Respondent/defendant

William Murray

Respondent/defendant

Procedural Posture

Civil Appeal (contract/assumpsit) / On Appeal to the Supreme Court of Canada (final Appellate Decision)

Legal Issues

  1. 1 Whether A.B. Foster had authority to bind Canada Central Railway Company
  2. 2 Whether the company ratified or adopted the contract made by Foster
  3. 3 Whether there was sufficient evidence to submit the question of authority/ratification to a jury

Ratio Decidendi

Where a trading corporation has received the benefit of work and there is evidence that a person acted and was held out as its agent or that the corporation adopted or ratified the contract (acts such as supplying cars, making payments, and allowing manager to act), the question of authority and ratification is properly a jury question; a corporation can be bound by a contract not under seal; on the facts the jury verdict for the respondents was supported and the appeal must be dismissed.

Court Disposition

Appeal dismissed; judgment for respondents affirmed

Orders

  • Appeal dismissed with costs
  • Judgment entered for respondents on the jury verdict for $12,218.51