Aberdeen Railway Co v Blaikie Bros
1854 · (1854) 1 Macq 461 (HL)
Posted By lanbuk.com
- Facts
- The railway company contracted to buy iron chairs from a firm. The company's chairman was a partner in the firm.
- Issue
- Could the company avoid the contract?
- Held
- Yes. A person in a position may not enter into engagements in which he has a personal interest that conflicts, or may conflict, with his duty. It did not matter whether the contract was fair.
- Principle
- The no-conflict rule is strict.
- Why it matters
- Section 235 of the Act puts the no-conflict rule into statute.
Words and Latin in this note
- Fiduciary
- A person, such as a trustee, director or agent, who must act loyally for another. He must not profit from his position or put himself in a conflict of interest. Open the note.
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