Bray v. Kettell
Bray v. Kettell
Opinion of the Court
This action is brought to recover damages for a breach of a written contract of affreightment entered into by the defendants in behalf of one Charles D. Archibald, doing business under the name and style of the “ Albert Freestone Quarries,” and executed by signing the same with the business name of their principal by themselves as agents. The only question in the case is, whether the defendants can be held liable on this contract.
The plaintiff does not controvert the general rule of law, that an agent is not personally responsible upon an instrument executed in the name of his principal. But he rests his claim against the defendants upon the ground that the present case falls within a recognized exception to the rule, because the defendants acted, in making the contract, in behalf of a foreign principal, resident “ beyond seas.” It is certainly true that some of the earlier English cases seem to sanction the doctrine, that where an agent acts for a foreign principal, the presumption is that credit is given exclusively to the agent, and he only is liable on contracts entered into in the name and on behalf of his principal. Gonzales v. Sladen, Bul. N. P. 130. De Gaillon v. L’Aigle, 1 B. & P. 368. Thomson v. Davenport, 9 B. & C. 87. Smyth v. Anderson, 7 C. B. 21. The same doctrine is stated in Paley on Agency, (4 Amer. ed.) 248, 2 Livermore on Agency, 249, and especially in Story on Agency, §§ 268, 290, where it is enunciated as a general fuie that agents acting for merchants residing in a foreign country are held personally liable on all contracts made by them for their employers, and this without any distinction whether they describe themselves in the contract as agents or not. We are inclined to think that a careful examination of the cases which are cited in support of this supposed rule will show that this statement is altogether too broad and comprehensive. Certain it is, that if it ever was received as a correct exposition of the law, it has been essentially modified by the more recently adjudged cases. It doubtless had its origin in a custom or usage of trade existing in England, by which the domestic factor or
These principles are decisive of the case at bar. The written contract on which the plaintiff relies contains no words from which any intent to bind the defendants can be inferred. On the contrary, it is executed in the precise form required by law to bind the principal only and to exonerate the agent. The name under which the principal conducted his business is signed by the defendants as his agents. It would have been open to more question if the defendants had signed their own names for their principal; but the contract is executed by the agents in the precise and technical form in which, by the strictest rule of law, it should be signed in order to bind the principal only. Story on Agency, § 153. There can be no doubt that if the principal resided in this country, he alone could have been sued on the contract. In like manner he only is responsible, although a foreigner, because he is the sole party to it, and there is nothing to control the intent manifested by this mode of executing the contract. The defendants are in no sense parties to it, and are not liable in this action for damages occasioned by the neg« leet of their principal to comply with its terms.
Verdict set aside ; judgment for the defendants.
Reference
- Full Case Name
- Guilford P. Bray v. John B. Kettell & another
- Cited By
- 1 case
- Status
- Published