Price v. Boivin et al., (1989) 104 N.B.R.(2d) 47 (TD)

• Judge: Russell, J.
• Court: Court of Queen's Bench of New Brunswick (Canada)
• Case Date: October 30, 1989
• Jurisdiction: New Brunswick
• Citations: (1989), 104 N.B.R.(2d) 47 (TD)

Price v. Boivin (1989), 104 N.B.R.(2d) 47 (TD);

    104 R.N.-B.(2e) 47; 261 A.P.R. 47

MLB headnote and full text

[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

....................

Sherman Price (plaintiff) v. Fernand Boivin et al. and Fourrures (B.J.) Ltée (defendants)

(F/C/170/89)

Indexed As: Price v. Boivin et al.

New Brunswick Court of Queen's Bench

Trial Division

Judicial District of Fredericton

Russell, J.

December 6, 1989.

Summary:

Price delivered 143 fox pelts to Fernand Boivin. Boivin gave Price a cheque for $14,100 drawn on his company, B.J. Fourrures Ltée. The cheque and receipts contained references to Trans Furs. The cheque failed to clear and Price sued Boivin and B.J. Fourrures on the cheque and in contract. The defendants submitted that they were merely the agent of Trans Furs, a Montreal company, not the principal.

The New Brunswick Court of Queen's Bench, Trial Division, held B.J. Fourrures Ltée liable as principal on both the cheque and in contract.

Agency - Topic 322

Creation of relation - Parties - What constitutes a principal - Price delivered 143 fox pelts to Boivin - Boivin gave Price a cheque for $14,100 drawn on his company, B.J. Fourrures Ltée - Cheque contained note that it was for purchase of fox furs for Trans Furs - Receipts also referred to Trans Furs - Cheque failed to clear and Price sued Boivin and B.J. Fourrures as principals on the cheque and in contract - Defendants claimed they were merely the agent of Trans Furs - The New Brunswick Court of Queen's Bench, Trial Division, held B.J. Fourrures liable on both the cheque and in contract because it acted as principal, not as Trans Furs' agent.

Contracts - Topic 664

Parties - Capacity - Contracts by representative of party - Necessary words to show representative capacity - Price delivered 143 fox pelts to Boivin - Boivin gave Price a cheque for $14,100 drawn on his company, B.J. Fourrures Ltée - Cheque contained note that it was for purchase of furs for Trans Furs - Receipts also referred to Trans Furs - Cheque did not clear and Price sued Boivin and B.J. Fourrures as principals on contract - Defendants submitted that they were merely the agents of Trans Furs - The New Brunswick Court of Queen's Bench, Trial Division, held B.J. Fourrures liable on the contract because it acted as principal, not agent - See paragraphs 14 to 17.

Negotiable Instruments - Topic 4045

Cheques - Capacity and authority of makers - Signature as agent - Price delivered 143 fox pelts to Boivin - Boivin gave Price a cheque for $14,100 drawn on his company, B.J. Fourrures Ltée - Cheque contained note that it was for purchase of furs for Trans Furs - Cheque did not clear - Price sued Boivin and B.J. Fourrures for money - Defendants denied liability on cheque and contract on the ground that they were merely the agent of Trans Furs in Montreal, which was the actual purchaser and principal - The New Brunswick Court of Queen's Bench, Trial Division, held B.J. Fourrures Ltée liable because it signed the cheque as principal, not the agent of Trans Furs - See paragraphs 1 to 13.

Cases Noticed:

McNulty Cartage Limited v. McManus (1980), 29 N.B.R.(2d) 332; 66 A.P.R. 332, refd to. [para. 15].

Northrup v. Taylor and Taylor (1980), 31 N.B.R.(2d) 184; 75 A.P.R. 184, refd to. [para. 17].

Mitchell-Clapham v. Fullarton (1974), 8 N.B.R.(2d) 192, refd to. [para. 17].

Statutes Noticed:

Bills of Exchange, R.S.C. 1985, c. B-5, sect. 16, sect. 16(3)(b) [para. 10]; sect. 51(1), sect. 51(2) [para. 11].

Authors and Works Noticed:

Fridman, Law of Agency (4th Ed.), pp. 162 [para. 12]; 178-179 [para. 16].

Counsel:

J. Shawn O'Toole, for the plaintiff;

Jean-Claude Roy, for the defendants.

This action was heard on October 30, 1989, by Russell, J., of the New Brunswick Court of Queen's Bench, Trial Division, Judicial District of Fredericton, who delivered the following decision on December 6, 1989.