Edmond Van Tongeren v. Tanganyika Tegry Plastics Limited (H.C.) Civ. Case 44-D-68, 7/10/68, Hamlyn, J.

Edmond Van Tongeren v. Tanganyika Tegry Plastics Limited (H.C.) Civ. Case 44-D-68, 7/10/68, Hamlyn, J.

Plaintiff sued defendant, a limited company for additional remuneration which was agreed upon in a letter written on defendant’s ordinary business stationery and signed by its managing director. Defendant claimed inter alia that the managing director had exceeded his authority.

            Held: The Article of the company authorized the board of directors to appoint a managing direct who would be entitled to exercise the  powers of the board. Therefore the managing director was the actual agent of the company, acting within the scope of his authority. The Court also indicated that the managing director was the ostensible agent of the company, having held himself out as authorized to act for it. Since plaintiff had relied on the agreement, and had performed extra work on the promise of the additional compensation, the Court indicated that if necessary it would have held the defendant estopped from denying the authority of the managing director, but such holding was not necessary  in light of the finding of actual authority.