Hurstanger v Wilson [2007]

Facts

  • The broker for a loan, agent of his principal received both commission from his principal and a another┬áprofit from the borrowers

Issue

  • Could the broker keep both rewards?

Decision

  • No

Reasoning

  • Although the principal knew about the second profit, the quantum of that second profit was not disclosed, therefore the broker was in breach of his fiduciary obligations
  • It would be disproportionate to allow rescission of the loan as a result of the agent’s breach; rescission is discretionary
RELATED CASE  Lloyd v Grace, Smith & Co (1912)

Posted in Commercial Law Revision Notes.

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