Summary of Newborne v Sensolid case

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Newborne v Sensolid (Great Britain) ltd (1953)

Summary of Facts: Company – pre-incorporation contract – he signed on behalf of the company name Ltd – but not yet incorporated.

Judgment: He could not sue on this contract since he did not make it as an agent or as a principal – as the principal purported to be the company.
Conversely, he could not be sued on it either – whole transaction was ineffective.

NOTE: One authority for requirement is that for ratification to be effective, the principal must be IN EXISTENCE at the time of the transaction. Principal cannot ratify transaction if not in existence at the time of the transaction. Distinguishable from Kelner v Baxter.

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