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Kelly v Fraser [2012]


  • The Privy Council were presented with a case in which trustees of a pension fund had accepted, without authority, a large deposit from the defendant, which would increase payments to him later in life
  • The claimants wished to give the payment back to the defendant, as it was accepted without authority


  • Was the acceptance binding


  • Yes


  • The trustees had the apparent authority to deal with all administrative functions relating to contributors’ money
  • The trustees were the only point of contact for contributors such as the defendant
  • The pension fund (principal) had organised its affairs in such a way as to grant apparent authority to make the acceptance of the payment binding
  • The case did not disagree with either The Ocean Frost [1986] or First Energy v Hungarian International Bank [1993]
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