Gordon Ramsey bound to a Personal Guarantee by his father in law

A recent High Court case between Gordon Ramsey and his father in law illustrates that an agent (the father in law) may bind his principal to an agreement by use of a signature machine, provided the agent has the appropriate authority to use the machine. The Court held that the father in law had sufficient authority to enter into a personal contract of guarantee and indemnity using a signature machine on Gordon Ramsey’s behalf.

Family ties aside, the parties’ relationship was one of trust which lasted for over two decades, and it was held that the father in law had not exceeded his authority in the particular circumstances.

This case is a useful reminder for principals that they should create a clear record of the scope of their agents’ authority in order to avoid and/or manage similar disputes. If they don’t, they could be on the hook for more than they bargained for.

Gordon James Ramsay v Gary Love [2015] EWHC 65 (CH)

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