Fairline Shipping Co v Adamson [1975] QB 180

Facts: The director of G&M Products who encouraged the storage contract for perishable foods knew prior to the contract that the company was in financial difficulties and not expected to recover. The claimant company stored goods in a refrigerated store who belonged to the managing director of a company. The claimant company received a letter and invoice sent on behalf of the managing director, indicating that he regarded the storage as his own venture. As a result of the director’s negligence, goods were damaged.

Issue: the claimant company brought an action against the director personally for negligence and breach of contract.

Held: The director owed a duty of care to the claimant company because the negotiation letters were written by Adamson in the first person…he was held personally liable.

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