A. F. Craig & Co., Ltd v. A. F. & J. C. Blackater [1923] ScotLR 292 (09 February 1923)

A. F. Craig & Co., Ltd v. A. F. & J. C. Blackater [1923] ScotLR 292 (09 February 1923)

Where an agent contracts for an undisclosed principal and is subsequently sued to judgment for the contract price after disclosure of the principal, the agent is entitled to sue for damages for breach of contract in a representative capacity for the principal. The election by the other party to treat the agent as liable under the contract entitles the agent to enforce all rights under the contract, including counterclaims for damages suffered by the principal. The technical plea of 'no title to sue' cannot be sustained in these circumstances.

Citation
[1923] ScotLR 292
Parties
Pursuer/respondent: A. F. Craig & Company, Limited; Defender/reclaimer: A. F. & J. C. Blackater
Jurisdiction
Scotland
Judgment Date
09 February 1923
Procedural Posture
Civil (contract/dispute) / Appeal (reclaiming Motion) From Lord Ordinary to Inner House
Outcome
Interlocutor of the Lord Ordinary recalled; case remitted for assessment of damages in the counter-action.
Legal Topics
Agent's Rights, Undisclosed Principal, Title to Sue, Election in Contract Enforcement, Damages for Breach of Contract
Contract Law Agency Law Agent's Rights Undisclosed Principal Title to Sue Election in Contract Enforcement Damages for Breach of Contract

Case Brief

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Parties

A. F. Craig & Company, Limited

Pursuer/respondent

A. F. & J. C. Blackater

Defender/reclaimer

Procedural Posture

Civil (contract/dispute) / Appeal (reclaiming Motion) From Lord Ordinary to Inner House

Legal Issues

  1. 1 Whether an agent for an undisclosed principal, after disclosure, has title to sue for damages for breach of contract when the other party has elected to sue the agent to judgment for the contract price.
  2. 2 Whether the agent can counterclaim for damages suffered by the principal after being sued for the contract price.

Ratio Decidendi

Where an agent contracts for an undisclosed principal and is subsequently sued to judgment for the contract price after disclosure of the principal, the agent is entitled to sue for damages for breach of contract in a representative capacity for the principal. The election by the other party to treat the agent as liable under the contract entitles the agent to enforce all rights under the contract, including counterclaims for damages suffered by the principal. The technical plea of 'no title to sue' cannot be sustained in these circumstances.

Court Disposition

Interlocutor of the Lord Ordinary recalled; case remitted for assessment of damages in the counter-action.

Orders

  • Recall of Lord Ordinary's interlocutor dismissing Blackaters' action for damages.
  • Remit to Lord Ordinary to assess damages due to Blackaters in the counter-action.