Anderson v. John Croall & Sons, Ltd [1903] ScotLR 41_95 (27 November 1903)

Anderson v. John Croall & Sons, Ltd [1903] ScotLR 41_95 (27 November 1903)

The auctioneer, by selling the horse without the owner's authority, warranted his authority to sell and is liable in damages to the purchaser for breach of that warranty, regardless of the innocence of the mistake. The measure of damages is the loss of bargain, i.e., the value the purchaser would have gained had the contract been enforceable.

Citation
[1903] ScotLR 41_95
Parties
Pursuer: Mrs Annie Holmes or Anderson; Defender: John Croall & Sons, Limited
Jurisdiction
Scotland
Judgment Date
27 November 1903
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, Second Division
Outcome
appeal dismissed; judgment for pursuer affirmed
Legal Topics
Auctioneer's Liability, Warranty of Authority, Sale by Mistake, Damages for Breach of Contract, Agent and Principal
Agency Law Contract Law Commercial Law Auctioneer's Liability Warranty of Authority Sale by Mistake Damages for Breach of Contract Agent and Principal

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Parties

Mrs Annie Holmes or Anderson

Pursuer

John Croall & Sons, Limited

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, Second Division

Legal Issues

  1. 1 Is an auctioneer liable in damages to a purchaser for selling a horse without authority from the owner?
  2. 2 Does an auctioneer warrant his authority to sell when acting as agent?
  3. 3 What is the measure of damages for breach of warranty of authority by an agent?

Ratio Decidendi

The auctioneer, by selling the horse without the owner's authority, warranted his authority to sell and is liable in damages to the purchaser for breach of that warranty, regardless of the innocence of the mistake. The measure of damages is the loss of bargain, i.e., the value the purchaser would have gained had the contract been enforceable.

Court Disposition

appeal dismissed; judgment for pursuer affirmed

Orders

  • Defenders to pay pursuer £26, 5s. sterling in damages with expenses.
  • Defenders to return the price of thirty-five guineas paid by the pursuer, upon return of the delivery order.