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Date: Wed, 27 Sep 2006 12:13:44 +0100

From: Steve Hedley

Subject: Grand Trunk Railway

 

Neil Foster writes:

But he did not expressly or impliedly authorise the owner to create contractual relations on his behalf with someone else.

This is indeed the question: whether he authorised the making of a contract which would bind him. As he was there when the contract was made, Haldane rather thought that he did. As Haldane put it:

The proper inference appears to be that when he and Dr. Parker had put the horse into the train, he went with Dr. Parker to the agent's office with the intention that Dr. Parker should make, as regards both the horse and himself, the whole of the necessary arrangements at the office. If Dr. Parker had been acting for himself, there can be no doubt that he would have been bound by the terms of the document he received from the agent and by his signature expressly told the company that he understood. Can the respondent be in a better position? On the evidence, can he say that the company's agent was not led by him to believe that Dr. Parker, by whose side he stood while the contract was being made, was making it with his assent? 'I was standing right there,' he says in his cross-examination, 'alongside Dr. Parker.'

Then Haldane quotes further from the cross-examination:

Q. What did Dr. Parker say after he had signed the contract?

A. He folded the contract up and said he would send that to Dr. McCombe by mail, and 'it will be there before you will be there,' and he says, 'No, you must give it to this man, he must carry it with him, and it shows that he is travelling with this car.' They just handed it to me and I put it in my pocket.

Haldane concludes:

Under such circumstances the true inference is that the respondent accepted the document knowing that it contained the contract obtained by Dr. Parker for his journey, and in accepting it accepted all the terms which were set out on the face of the document, and which he would have seen had he taken the trouble to look at what was handed to him. It does not appear possible to say, in this case, that he was misled in any way, or that the agent need have done more than he did when he handed over a document which set out the terms offered for acceptance with great distinctness, in the form which the Railway Board had directed.

 

Steve Hedley
Faculty of Law, University College Cork

 

-----------------------------------------------------------
From: Neil Foster
Sent: 27 September 2006 01:43
Subject: Re: ODG: Grand Trunk Railway

Dear Jason et al;

I have not read the case but I will rely on your summary. I hesitate to comment on contract but I will dive in anyway! I think there are two issues.

The first is whether the respondent, Robinson, is a party to a contract which contains the exclusion clause. He signed nothing. His agreement was with the owner. The only way that he could be a party to the contract seems to me to be if the owner was acting as his agent for conclusion of a contract. But on no common sense analysis of the situation would this be the case. He was presumably doing a job for the owner, and he expected the owner to arrange transport. But he did not expressly or impliedly authorise the owner to create contractual relations on his behalf with someone else.

There is a second issue here as to whether, even if the owner's rep was entering into a contract for Robinson, sufficient notice of the limitation of liability was given and when. The owner's rep signed it. The High Court decision in Toll (FGCT) Pty Limited v Alphapharm Pty Limited [2004] HCA 52 strongly suggests that someone who signs a document will be bound by it, even where it contains something of an unusual exclusion clause. They distinguish "ticket" cases where parties are simply given a document, from cases of signature - [54]-[57].

On the facts in Toll the HC also found that the party who had signed the exclusion clause was acting as the agent of the party who suffered the damage. But I think the facts are different here.

 


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