Graham v United Turkey Red [1922] ScotCS CSIH_1 (10 June 1922)

Graham v United Turkey Red [1922] ScotCS CSIH_1 (10 June 1922)

Pursuers are not entitled to commission under the contract for periods after material breach, but are entitled to accounting and payment of commission earned prior to breach; the right to commission is conditional on faithful performance of agency obligations.

Citation
[1922] ScotCS CSIH_1
Parties
Pursuer: Graham & Co.; Defender: United Turkey Red Co.
Jurisdiction
Scotland
Judgment Date
10 June 1922
Procedural Posture
Civil / Appeal
Outcome
Order for accounts recalled; accounting restricted to period prior to breach; defenders assoilzied from accounting and damages for post-breach period; remit to Lord Ordinary for further proceedings.
Legal Topics
Breach of Contract, Commission Entitlement, Mutual Obligations, Material Breach, Quantum Meruit, Quantum Lucratus
Contract Law Agency Law Breach of Contract Commission Entitlement Mutual Obligations Material Breach Quantum Meruit Quantum Lucratus

Case Brief

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Parties

Graham & Co.

Pursuer

United Turkey Red Co.

Defender

Procedural Posture

Civil / Appeal

Legal Issues

  1. 1 Whether an agent in material breach of contract is entitled to commission under the contract.
  2. 2 Whether commissions earned prior to breach are recoverable.
  3. 3 Whether the agent's breach disentitles them from accounting and payment of commission.

Ratio Decidendi

Pursuers are not entitled to commission under the contract for periods after material breach, but are entitled to accounting and payment of commission earned prior to breach; the right to commission is conditional on faithful performance of agency obligations.

Court Disposition

Order for accounts recalled; accounting restricted to period prior to breach; defenders assoilzied from accounting and damages for post-breach period; remit to Lord Ordinary for further proceedings.

Orders

  • Defenders to account for commission earned by pursuers from 26 February 1914 to July 1916.
  • No accounting or payment for commission after July 1916 due to pursuers' material breach.