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Lloyd v Grace, Smith & Co (1912)

Facts

  • A solicitors’ clerk fraudulently induced a conveyance from a client, then disposing of her house for his own personal benefit

Issue

  • Were the solicitors responsible for the fraudulent act?

Decision

  • Yes

Reasoning

  • Although the act was fraudulent, the clerk was authorised for procure signatures for the firm; apparent authority represented by virtue of his position as clerk overruled the nullity usually created by fraudulent acts
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