Agency; agent's liability to third parties; presumption against personal liability.
Facts: Fisken rented a house in Melbourne that belonged to Jowett, who was living in England. Fisken contacted Cooper, a contractor, and asked him to supply gravel to resurface the driveway of the Melbourne house. Fisken made it clear to Cooper that he was acting for Jowett, and that he had no authority except to order gravel. Fisken and Cooper agreed on a price and the gravel was supplied. However, neither Fisken nor Jowett paid for it. Cooper sued Fisken for payment.
Issue: Could it be inferred in the circumstances that Fisken had intended to be personally liable on the contract with Cooper?
Decision: In the circumstances it could be inferred that Fisken had intended to become personally liable on the contract, even though he had acted for a disclosed principal.
Reason: An intention on the part of the agent to be personally liable on a contract, even when the existence of a principal is disclosed, may be properly inferred from additional circumstances. In this case, because the price of the gravel was relatively small, and because the owner was out of the country, it could be inferred that the agent intended to be personally liable for payment of the price. It would be different if major repairs were contracted for at considerable cost, in which case the inference would probably be that the agent did not intend to be personally liable for payment.