Stavrinides and others v Bank of Cyprus Public Co Ltd

Agent - Authority - Ostensible authority – . The claimants claimed that the defendant bank's predecessor had agreed to write off significant debts that they had owed to the bank. The Chancery Division, dismissing the claim for specific performance of that alleged agreement and allowing the defendant's counterclaim for the claimants' indebtedness, held that the letter purporting to establish the alleged agreement to write off the debts had been an attempted fraud by a former employee of the bank and the first claimant, and that even if the first claimant had been able to show that it was objectively reasonable for him to have believed that the employee had authority to agree to the write-off, or the limited authority to communicate it, the first claimant did not have any honest belief that the employee had any such authority.

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