Sims & Co vs Midland Railways Co
(1913) 4 KB 103
Case Summary
[Section 189 - Agency by Necessity]
[Creation of Agency]
Facts
Sims & Co consigned butter to be transported by Midland Railway Co. Due to unforeseen delays and extremely hot weather, the butter started deteriorating. To prevent total loss, the railway company sold the butter on an urgent basis. Sims & Co later sued the railway company, claiming that the sale was unauthorized and that the railway company was liable for the loss. Midland Railway Co contended that it acted out of necessity to mitigate the damage.
Issues
Does the railway company have the authority to sell the goods under the doctrine of agency of necessity?
Is the railway company liable for the loss incurred during the sale?
Relevant Legal Provisions
Indian Contract Act, 1872
Section 189 - An agent has authority, in an emergency, to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prudence, in his own case under similar circumstances.
Judgement
The court held that Midland Railway Co acted within its rights under the doctrine of agency of necessity. The sale of butter was justified due to the urgent circumstances, including the risk of further deterioration and the lack of alternative means to preserve the goods. The judgement recognized that a bailee may act as an agent of necessity when unforeseen emergencies arise, provided their actions are reasonable and in the best interest of the owner. Sims & Co's claim for damages was dismissed.
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