The Coopers v. G. Fox and Partners Inc. Case

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Table of Contents

The Facts of The Case
The Issue at The Law of The Court Considering
How The Law Was Applied in This Case
Conclusion of the Court

The Facts of The Case

Fox met with representatives of Coopers, a national accounting firm, on November 3, 1981, to procure accounting services. Fox stated that he was acting on behalf of an organization called G. Fox and Partners Inc., which was in the process of being formed. Coopers agreed to provide the services based on the information that was provided. The accounting firm completed its work in mid-December 1981 and billed G. Fox and Partners Inc. for work done. Coopers sued G. Fox and Partners Inc. and Garry Fox individually for failure to pay the bill.

The Issue at The Law of The Court Considering

The issue at law is the promoter’s contract that places liability on the individual acting on behalf of a company. Cooper stated that Garry Fox and G. Fox and Partners Inc. breached an expressed and implied contract when they failed to pay the bill amounting to $10,827. The court aimed to determine the terms and context of the agreement. The promoter’s liability applies to agreements made on an organization’s behalf. However, when one agrees to look at the corporation when making a contract explicitly, the responsibility shifts.

How The Law Was Applied in This Case

The trial court applied the promoter’s contract to the case noting that Fox was not solely acting as an agent when he procured accounting services from Cooper. However, the court found that Cooper could not hold Fox liable for payment of the services, given that he solely looked at G. Fox and Partners Inc. during the contract. The trial court found that no express or implied agreement would compel Fox to pay for the services rendered. The court of appeals overturned the ruling stating that the promoter’s contract made Fox liable for the services provided based on the fact that he was acting as a promoter of an organization and that he had the burden to provide proof that he was not liable.

Conclusion of the Court

The court of appeal concluded that the trial court erred in removing liability from Fox. Because Fox stated that he was acting on behalf of a corporation he was creating when contracting Cooper’s services, he made himself liable for the procured services. The proof provided to show that Fox was indeed part of G. Fox and Partners Inc. Promoter’s contract is evident in the case through the association and actions of Fox. Therefore, he was party to the issue and was liable for the fees charged by Coopers.

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The Coopers v. G. Fox and Partners Inc. Case

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