Campus Group Pty Ltd v Daylesford Pty Ltd

Campus Group Pty Ltd (the appellant) appealed to the Court of Appeal of New South Wales against a decision of the primary judge who had found in favour of Daylesford Pty Ltd (the respondent). The dispute concerned the enforceability of a loan agreement, with the appellant challenging the primary judge's findings of fact regarding the implied actual authority of an individual to enter into the agreement on behalf of the appellant.

The central legal issue before the Court of Appeal was whether the primary judge had erred in finding that Mr. Gavan, acting on behalf of Campus Group Pty Ltd, possessed implied actual authority to enter into the loan agreement with Daylesford Pty Ltd. This required the Court to consider the principles governing the determination of implied actual authority, particularly in circumstances where the authority is not expressly granted but inferred from the conduct of the parties and the surrounding circumstances.

The Court of Appeal affirmed the primary judge's findings, holding that the evidence supported the conclusion that Mr. Gavan had implied actual authority. The Court reasoned that the appellant's conduct, including its previous dealings and the way it had permitted Mr. Gavan to act in similar capacities, demonstrated an intention to clothe him with the authority to enter into such agreements. The Court applied established principles of agency law, emphasizing that implied actual authority arises from the conduct of the principal and the agent, and can be inferred from the relationship between them and the nature of the transaction. The appeal was dismissed with costs.