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First Energy v Hungarian Bank

[1993] 2 Lloyds Rep 194

Case summary last updated at 22/01/2020 14:37 by the Oxbridge Notes in-house law team.

Judgement for the case First Energy v Hungarian Bank

X was a “Senior Manager” of a bank in Manchester, arranging finance for D. D knew that X had no actual authority to agree to such an agreement. X sent D a letter which was interpreted as offer of a loan which had been authorised by people more senior than him. C sought to repudiate contract. Held:
·     X had ostensible authority to communicate to D that loan had been granted.
·     Thus contract was binding. 

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