Debenham vs Mellon
(1860) 6 AC 24
Case Summary
[Creation of Agency]
[Implied Authority]
[Agency between Husband and Wife]
Facts
Mr. Mellon and his wife, Mrs. Mellon lived together in the same hotel where they were the managers and had no domestic establishment of their own. Mrs. Mellon purchased goods on credit from Debenham, a tradesman. The goods were purchased without the explicit consent of Mr. Mellon, who had made it clear to both his wife and Debenham that he would not be liable for her purchases. When Mrs. Mellon failed to pay, Debenham sought to recover the amount from Mr. Mellon, arguing that Mrs. Mellon had an implied authority as a wife to bind her husband to such transactions.
Issues
Does a wife have an implied authority to bind her husband to contracts made for the purchase of goods?
Can a tradesman hold a husband liable for the debts of his wife when the husband explicitly refuses to authorize such purchases?
Judgement
The Court held the husband not liable for purchases of his wife. In a domestic establishment, a wife has the implied authority of her husband to buy articles for household necessity from his money. However, in this case the Court specified that mere fact of cohabitation could not be an adequate presumption of agency.
The Mellons did not run a regular household, all their food and shelter was provided for by the hotel. Absence of any domestic establishment led to no creation of agency between husband and wife.
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