Facts
A solicitor's managing clerk tricked a client into transferring her properties to him and kept them.
Issue
Is an employer liable for fraud committed for the employee's own benefit?
Held
Yes; the firm was liable because it had held the clerk out as having authority for such transactions.
Principle
An employer can be for an employee's fraud within his apparent authority.
Why it matters
Leading case on employee fraud.
Cited in these chapters
Cite this page
Lloyd v Grace, Smith & Co [1912] AC 716 (Lanbuk) <https://www.lanbuk.com/llb/torts/cases/lloyd-v-grace-smith> accessed 31 October 2026
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This summary is a Lanbuk study aid based on the generally known facts and reports of the case. It is not legal advice.