Company had two directors, X and Y. Was agreed that X would take over financial side of business, and Y the day-to-day operations of business.
However from time to time, and with consent of Y, X would forge Y’s signatures on certain financial documents. One such document was sought to be upheld against company, and Y challenged this on grounds that he had not put his signature to it.
Rule in Great Fingall does not apply where agent who made forged documents acted with ostensible authority.
Where this is case, s.44(5) acts to make contract binding on company.
Additionally, is ‘much force’ in view that s.44(5) has displaced rule in Great Fingall.
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