Facts
- Livingston (principal) asked Ireland (agent) to procure 500 (+/- 50 tons) of sugar and have it shipped to any of a number of possible destinations in the UK
- In Ireland’s market (Mauritius), procuring 500 tons was next to impossible
- Ireland shipped 400 tons to Livingston, and Livingston rejected them
Issue
- Was Livingston bound to accept the sugar?
Decision
- Yes
Reasoning
- Ireland, within his actual authority, was authorised to apply a reasonable interpretation to his agency agreement
- As 500 tons was unavailable, it was reasonable to assume that 400 tons would be acceptable
