Danish Dairy Co., Ltd, v. Gillespie [1922] ScotLR 530 (11 July 1922)

Danish Dairy Co., Ltd, v. Gillespie [1922] ScotLR 530 (11 July 1922)

The landlord's agent did not have authority to bind the landlord to a formal lease, and the acceptance of expenses did not constitute homologation in the absence of such authority or the landlord's knowledge. The tenant's abstention from seeking other premises did not amount to rei interventus, as there was no evidence the landlord knew of or permitted such reliance. Therefore, the landlord was entitled to resile from the informal agreement, and the action for damages failed.

Citation
[1922] ScotLR 530
Parties
Pursuer: Danish Dairy Company, Limited; Defender: James Gillespie
Jurisdiction
Scotland
Judgment Date
11 July 1922
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary's Judgment
Outcome
Appeal allowed; interlocutor of Lord Ordinary recalled; defender assoilzied (absolved) from conclusions of the action.
Legal Topics
Landlord and Tenant, Lease Renewal, Agency Authority, Homologation, Rei Interventus, Informal Agreements
Property Law Contract Law Landlord and Tenant Lease Renewal Agency Authority Homologation Rei Interventus Informal Agreements

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Parties

Danish Dairy Company, Limited

Pursuer

James Gillespie

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary's Judgment

Legal Issues

  1. 1 Whether an informal agreement for lease renewal, negotiated by agents, was binding on the landlord
  2. 2 Whether the landlord's agent had authority to bind the landlord to a formal lease
  3. 3 Whether acceptance of expenses by the landlord's agent constituted homologation of the informal agreement

Ratio Decidendi

The landlord's agent did not have authority to bind the landlord to a formal lease, and the acceptance of expenses did not constitute homologation in the absence of such authority or the landlord's knowledge. The tenant's abstention from seeking other premises did not amount to rei interventus, as there was no evidence the landlord knew of or permitted such reliance. Therefore, the landlord was entitled to resile from the informal agreement, and the action for damages failed.

Court Disposition

Appeal allowed; interlocutor of Lord Ordinary recalled; defender assoilzied (absolved) from conclusions of the action.

Orders

  • Interlocutor of Lord Ordinary recalled
  • Defender assoilzied from conclusions of the action