Sea Emerald v Prominvestbank [2008]

Facts

  • A bank’s agent provided a refund guarantee on payments of $20 million of the construction of a ship

Issue

  • Did the agent have authority to provide the guarantee, was it ratified?

Decision

  • No, no

Reasoning

  • No apparent or actual authority
  • Ratification is the unilateral manifestation of will following adequate knowledge of the unauthorised act, of which there was insufficient evidence
RELATED CASE  Lodgepower v Taylor [2004]

Posted in Commercial Law Revision Notes.

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