Graham & Co. v. United Turkey Red Co., Ltd [1922] ScotLR 420 (10 June 1922)

Graham & Co. v. United Turkey Red Co., Ltd [1922] ScotLR 420 (10 June 1922)

An agent who commits a material breach of contract is not entitled to commission for periods after the breach, but may recover commission earned prior to the breach. The principal is not obliged to account for commission after breach, and any claim for post-breach remuneration must be based on quantum lucrati, with the onus on the agent to prove benefit to the principal.

Citation
[1922] ScotLR 420
Parties
Pursuer: Graham & Company; Defender: United Turkey Red Company, Limited
Jurisdiction
Scotland
Judgment Date
10 June 1922
Procedural Posture
Civil / Appeal (reclaiming Note)
Outcome
Appeal allowed in part; pursuers entitled to accounting for commission earned prior to breach, not for period after breach.
Legal Topics
Breach of Contract, Agent's Right to Commission, Material Breach, Mutual Obligations, Quantum Meruit, Quantum Lucrati
Contract Law Agency Law Breach of Contract Agent's Right to Commission Material Breach Mutual Obligations Quantum Meruit Quantum Lucrati

Case Brief

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Parties

Graham & Company

Pursuer

United Turkey Red Company, Limited

Defender

Procedural Posture

Civil / Appeal (reclaiming Note)

Legal Issues

  1. 1 Is an agent entitled to commission earned prior to a material breach of contract?
  2. 2 Does a material breach by the agent bar recovery of commission for periods after breach?
  3. 3 Does the agent's breach entitle the principal to retain earned commission or only to damages?

Ratio Decidendi

An agent who commits a material breach of contract is not entitled to commission for periods after the breach, but may recover commission earned prior to the breach. The principal is not obliged to account for commission after breach, and any claim for post-breach remuneration must be based on quantum lucrati, with the onus on the agent to prove benefit to the principal.

Court Disposition

Appeal allowed in part; pursuers entitled to accounting for commission earned prior to breach, not for period after breach.

Orders

  • Defenders to lodge accounts for commission earned by pursuers between February/March 1914 and July 1916.
  • No accounting or payment for commission after July 1916.