Salomon V Salomon And Co Ltd

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Salomon v Salomon and Co Ltd (1897) When was law firstly introduced? Laws where present for decades as people where punished for breaking the laws. In regard to our case, which was in 1897. The case was between Salomon v Salomon and Co Ltd, which is a person and a company he owned. He filled a case against his company that the company owes him money and then the creditors of the company reverted the case on him as being the owner he should be liable to pay them back as the company went to liquidation. Facts of the case An entrepreneur called Aron Salomon started a company that produces boots and other leather products. His children wanted to become partners with their father so Salomon started a new company called Salomon and Co Ltd.…show more content…
He was paid 5,000 for his debentures. The money came from the sales of assets Salomon claimed that the amount from the assets sold and bank balance was his, as he also owned debentures in the company worth 9,000, which made the company liable to pay him back the remaining amount. After this action the creditors of the company were afraid that the company would not pay them back. The creditors resisted Salomon’s action to claim the rest of the money by filling a lawsuit against him that the balance of money available is owed to them rather than him as he is considered the owner of the company and should be accounted for the liquidation and pay them back from his own money if the balance from the company was not enough. Rule of the Court High Court The case between Broderip v Salomon where Broderip sued Salomon to pay back the amount Broderip owed the company, was first assigned to the high court with the judge Vaughan. We know from the facts of the case that Broderip was paid 5,000. The court considered that the company is an agent by which it was held by Salomon so the first court ruled that Salomon and Co Ltd are considered as the same person but with different names so Salomon was held liable to pay the creditors or in this case Broderip back his debenture amounts. Judge Vaughen ruled to Broderip against Salomon and held Salomon liable to pay back the debenture amount remaining to Broderip. Court of
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