In what circumstances will the court consider the way Salomon conducted its business with outsiders?
British Columbia, Canada
The following excerpt is from BMF Trading, a Partnership v. Abraxis Holdings Ltd., 2003 BCCA 559 (CanLII):
Salomon v. Salomon does not direct itself to a bargain of the nature alleged here. I do not, however, wish to be misunderstood. In deciding whether there was a bargain of the sort mentioned in (1), the court may consider relevant the way in which the company conducted its business with outsiders. That is simply because how someone presents himself to those with whom he deals may reflect accurately a relationship with others but it may not. For instance, sometimes a person appears to be contracting for himself and, if so, he will not be permitted, as against the other contracting party, to say he was only an agent. But if indeed he was an agent and if he does something in breach of his obligation to his principal, he will be liable to that principal. How he has presented himself to the outside world may, but not necessarily must, in a dispute between himself and his alleged principal, be some evidence as to what the relationship between them was.
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