The Decision in the Case Of: Tooth & Co V

question 10

Multiple Choice

The decision in the case of: Tooth & Co v Laws (1888) 9 LR (NSW) 154 was based on the fact that:

• A) The dealings of the secretary appeared to be within the scope of their authority even though they lacked actual authority.
• B) The defendant's previous conduct in paying for the jewellery amounted to a representation of the agent's authority.
• C) The defendant's failure to notify the suppliers of the sale of business prohibited him from denying that the purchasers were his agents.
• D) Buying and selling cars was a normal practice of that kind of business.

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Definitions:

Mistake

An incorrect belief or understanding regarding a fact, judgment, or event that can affect the validity of a contract.

Avoidance

The legal process or action taken to nullify or declare a transaction void, preventing its enforcement.

Duress

involves the use of force, threat, or coercion to compel someone to act against their will or judgment.

Undue Influence

The improper use of power or trust in a way that deprives a person of free will and substitutes another's objective.