Published on: 27 October 2022 at 21:18 IST
Court – High Court of Australia
Citation – Toll (FGCT) Pty Limited v/s Alphapharm Pty Limited & Ors [2004] HCA 52
Hon’ble High Court of Australia, the Apex Judicial Authority of Australia has held that a Principal is bound by conditions accepted by the Agent. It is held that the as long as the Agent operates within the terms and conditions of the principal then it is said to be to be acting within the authority and his actions are enforceable upon the Principal.
Para – 81
The primary judge’s conclusion that the relationship of agency “was a limited one whereby Richard Thomson made the administrative arrangements on behalf of Alphapharm for the timing and size and identification of the outbound shipments” appears to overlook the most obvious feature of the commercial circumstances, which was that the outbound shipments were to take place pursuant to a contract, and that, at the very least, the rates of freight and terms of payment had to be agreed.
It is not enough to say that Richard Thomson was to pass the cost on to Alphapharm. Someone had to agree about the cost, which was to be borne by Alphapharm. The evidence compels the conclusion that Alphapharm authorised Richard Thomson to contract with Finemores and to agree upon rates of freight, terms of payment, and such other standard terms and conditions of the contract of storage and transportation as were required by Finemores.
So long as the terms and conditions to which Richard Thomson agreed were Finemores’ standard terms and conditions then Richard Thomson was acting within its authority.
Drafted by Abhijit Mishra
Key Words – Principal, Agent, Contractual Terms and Conditions, Authority.