McNeil v Law Union and Rock Insurance Company 
- A third party to an agency agreement sought to renew his commercial insurance contract with the defendant company (principal) via a broker
- In order to retain the third party as a customer, broker concluded the renewal under the agency of the claimant, with no effort on the part of the agent
- By doing this, the customer could pay a lower price for his renewal
- Could the agent claim commission on the insurance renewal from his principal?
- An agent may only earn commission on a contract to which he is the “efficient cause” (effective cause)
- As the broker had carried out all of the work, no commission was payable to the agent, who had done nothing more than sign the agreement
Posted in Commercial Law Revision Notes.
This page was last updated on 16th January 2015