COMMON LAW 227
On the 19th February 1881, a general meeting of the Company was held at which a resolution was passed authorizing the Directors to borrow 30,000 £.
The Directors borrowed this amount from the Port Sea Society.
The Society went into liquidation in 1892. The Liquidator of the Society sought to claim the sum of £ 30,000 lent to the company.
It was contended that the resolution of the company authorizing borrowing was ultra vires and that because William, the Secretary was a common officer notice to him was notice to Society and therefore Society could not recover.
Held that the Society could recover for reasons at p. 749.
II. The notice to the agent must have been obtained by him in the same transaction and not in a previous transaction.
There is a further qualification. Even if the notice was acquired by the agent in the same transaction, it will not be imputed to the purchaser, unless it is so material to the transaction as to make it the duty of the agent to communicate it to the principal.
( 1886 )— 31 Ch. D. 671—In Re Cousins.
Facts :
In 1871, one William’s cousins made a will of his property and left it in trust to his trustees.
One William Banks was a solicitor for the trustees.
Mathew, a cousin was to receive a share in the proceeds of real and personal property left by William’s cousins under the will.
Mathew mortgaged his share to William Banks, the Solicitor as security for a loan of £ 35.
In 1873, Mathew mortgaged his share to William Richardson through Banks and Banks was paid off.
In 1874 Richardson transferred his mortgage to William Drake. No Notice was given to the Trustees.