Page: 466↓
(Before
( Ante, 9th July 1880, 7 R. 1117.)
Subject_Writ — Holograph — Agreement Written by Factor to the Dictation of his Principal.
Held ( aff. judgment of the Court of Session) that an agreement written by the factor for one of the parties in the presence of the other party to the dictation of the factor's principal, and unsigned, is not a valid holograph writ of the principal so as to constitute, when formally accepted and acted on, a completed contract between the two parties interested therein.
This case was decided by the First Division of the Court Of Session on 9th July 1880, and is reported in 7 R. 1117. The defender having appealed against the interlocutor then pronounced, the House of Lords recalled it and remitted to the Court of Session to dispose of the merits of the case in a manner favourable to the contentions of the appellant. On the question as to the validity of the alleged agreement of 28th September 1878, however, the Lords who took part in the judgment concurred with the view taken in the Court of Session, and their views were thus expressed by Lord Watson:—“I am of opinion with all the Judges of the First Division that the missive of the 28th September 1878 is not a valid holograph writ. I do not doubt that a missive written and signed by a factor or agent professing to bind his principal is a probative holograph according to the law of Scotland, and that when duly accepted it will bind the principal if he gave authority, and will subject the writer in damages if he did not. It appears to me, however, to be sufficient for the decision of this point that Mr Logan who wrote the document was not in any sense a party to the negotiations on the 28th September, which resulted in its delivery to the respondents for their consideration and acceptance. These negotiations were conducted by the appellant in person, and it does not appear from the evidence that Mr Logan ever had or supposed he had any authority from the appellant to make such an offer. Even if Mr Logan had been the sole negotiator, acting in the appellant's absence and by his instructions, I doubt whether the writing would have been thereby validated. The general rule of the law of Scotland is that a holograph writing in order to be effectual must be subscribed by the writer.”
Counsel for Appellant (Defender)—Solicitor-General ( Herschell)— Webster, Q.C. Agents— Simson & Wakeford and Webster, Will, & Ritchie, S.S.C.
Counsel for Respondents (Pursuers)— Benjamin, Q.C.— Asher. Agents— W. A. Loch and Mackenzie, Innes, & Logan, W.S.