Facts
- An agent was authorised to conclude a large insurance deal, sharing responsibility between several insurance underwriters
Issue
- Was the defendant’s share of liability set at 20% in accordance with the insurance agreement or 32.5% in accordance with the treaty?
Decision
- Treaty takes precedence, 32.5%
Reasoning
- Inherently unlikely that percentages would be omitted in an agreement
- Contracting agents usually have the authority to enter into contracts
- The act preferring 32.5% was ratified by omission as the principal had knowledge of all material facts and assumed the agent had authority
