Shire Council v. Dependable Motors Ltd [1961] AC 336
In this case, the buyer sought to buy a tractor and sent an employee to inspect one so as to report back in relation to its suitability. Upon arriving to inspect the aforementioned tractor, the employee then told the seller he was a representative of the buyer and intended to report to them in relation to the tractor and also told the seller the tractor was needed for roadwork and asked whether it was suitable.
The seller then told them it was and so the employee reported this to the buyer who then purchased the tractor only to find it was not suitable. Consequently, it was held, via the agency relationship, the buyer could rely upon the assurances the seller gave to the buyer’s employee regarding the tractor’s fitness for purpose.
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