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Archibald Freeland v. Heron, Lenox and Company was a case heard by the United States Supreme Court in 1812. The dispute arose when Freeland sued for breach of contract after he had been hired as an agent to purchase goods from England on behalf of Heron, Lenox and Company. The company refused to pay him his commission due to their belief that the goods were not purchased at fair market value or with reasonable diligence. In its ruling, the court held that agents are entitled to commissions even if they do not perform their duties perfectly; instead, it is up to employers who hire them to provide clear instructions about how they should conduct business transactions on their behalf. Furthermore, employers must also demonstrate good faith in dealing with agents and cannot use minor errors as an excuse for withholding payment without just cause.
In the dissenting opinion of Archibald Freeland v. Heron, Lenox and Company, Justice Bushrod Washington argued that the majority's decision was inconsistent with prior precedent established in similar cases. He maintained that a contract between two parties should be enforced according to its terms unless there is evidence of fraud or mistake on either side. In this case, he believed that the defendant had not acted fraudulently or made any mistakes when entering into their agreement with Freeland; therefore, they should have been held to it as written. Furthermore, he noted that if one party were allowed to unilaterally change an agreement without consequence then contracts would become meaningless and could no longer be relied upon by anyone involved in commerce. As such, Justice Washington concluded his dissent by arguing for a reversal of the lower court's ruling so as to uphold both parties' rights under their original contract.