Habton Farms v Nimmo

Habton Farms v Nimmo

The first defendant warranted his authority to contract on behalf of the alleged principal but lacked such authority. The claimant relied on this warranty and is entitled to damages. The correct measure of damages, in the circumstances where the claimant reasonably continued to seek performance of the contract and the horse died before it could be resold, is the contract price without deduction for the value of the horse, as the loss was not independent of the breach.

Parties
Claimant/respondent: Habton Farms; First Defendant/appellant: Christopher N Nimmo
Jurisdiction
England and Wales
Judgment Date
06 February 2003
Procedural Posture
Civil Appeal / Appeal From Judgment of Leeds Mercantile Court
Outcome
Appeal dismissed
Legal Topics
Breach of Warranty of Authority, Measure of Damages, Authority of Agent, Sale of Goods
Contract Law Agency Law Breach of Warranty of Authority Measure of Damages Authority of Agent Sale of Goods

Case Brief

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Parties

Habton Farms

Claimant/respondent

Christopher N Nimmo

First Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Judgment of Leeds Mercantile Court

Legal Issues

  1. 1 Whether the first defendant was liable for breach of warranty of authority in purporting to contract for the sale of a horse without authority from the alleged principal.
  2. 2 What is the correct measure of damages for breach of warranty of authority in the context of a conditional contract for the sale of goods.

Ratio Decidendi

The first defendant warranted his authority to contract on behalf of the alleged principal but lacked such authority. The claimant relied on this warranty and is entitled to damages. The correct measure of damages, in the circumstances where the claimant reasonably continued to seek performance of the contract and the horse died before it could be resold, is the contract price without deduction for the value of the horse, as the loss was not independent of the breach.

Court Disposition

Appeal dismissed

Orders

  • Judgment for the claimant for £70,000 against the first defendant for breach of warranty of authority.
  • Costs to be assessed if not agreed.