What is the ratio in Freeman & Lockyer v Buckhurst Park Properties?

A company can be bound by apparent authority where the board represents that a person has authority to act, even without formal appointment.

What did the court decide in Freeman & Lockyer v Buckhurst Park Properties?

The Court of Appeal held the company was bound by contracts made by someone acting as managing director based on apparent authority principles.

Why is Freeman & Lockyer v Buckhurst Park Properties important for company law?

It established the modern four-part test for apparent authority, protecting third parties dealing with companies and clarifying corporate representation principles.

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