In theory, section 2160 of the Civil Code of Quebec is clear. In fact, the mandator is liable to third persons for the acts performed by the mandatary in the performance and within the limits of his mandate and even if the acts exceed the limits, unless the mandator has not ratified such acts.
In the field of insurance, where every company does business with numerous adjustors, a simple mistake on coverage could benefit insureds who could eventually receive an insurance indemnity not otherwise owed.
In the judgment De Melo vs. Promutuel L’Outaouais, the Court of Quebec rendered an interesting decision regarding whether acts and words of an adjustor were binding upon the insurance company which had given him a mandate.
