TITLE X. AGENCY. CHAPTER I. Agency in general. CHAPTER I. AGENCY IN GENERAL. ARTICLE I. Agency, what, and how created. II. Authority of the agent. III. Mutual obligations of the principal and third persons. V. Delegation of agency. VI. Termination of agency. Under this head, the representation of one person by ARTICLE I. AGENCY, WHAT, AND HOW CREATED. SECTION 975. Agency, defined. 976. Who may appoint and who may be an agent. 977. Agents, general or special. 978. Personal trust cannot be delegated to an agent. 979. Creation of agency. 980. Agency is actual or ostensible. 981. Ratification of agent's act. 982. Ratification of part of a transaction. 983. Ratification not to work injury to third persons. 984. Ratification by retaining benefit of agent's acts. defined. 975. An agent is one who represents another, called Agency, the principal, in dealings with third persons. Such representation is called Agency. Who may appoint and § 976. Any person, having capacity to contract, may who may be appoint an agent;' and any person of sound mind may be an agent. Agents, general or special. Personal trust cannot be delegated to an agent. Creation of agency. Agency is actual or an agent.❜ Story on Agency, § 6. See Bergman v. Howell, 3 2 Sto. Ag., §7; Bac. Abr., Authority, B.; Hopkins v. 8977. An agent for a particular act or transaction, is called a special agent. All others are general agents. Story Ag., SS 17-20. Is there any real importance in the distinction? See id., § 126, note. § 978. No personal trust can be delegated to an agent. Story on Agency, §§ 11, 12. 979. An agency may be created by an original authority, or a subsequent ratification; and no consideration is necessary to make either binding upon the principal. 1 Newton v. Bronson, 13 N. Y., 594; Moss v. Rossie Mining Co., 5 Hill, 137; Weed v. Carpenter, 4 Wend., 219; Peterson v. Mayor of New York, 17 N. Y., 453; Hoyt v. Thompson, 19 id., 218. 2 Commercial Bank v. Warren, 15 N. Y., 577. § 980. An agency may be actual or ostensible. It is ostensible. actual, when the agent is really employed by the principal, and it is ostensible, when the principal intentionally, or by want of ordinary care, causes a third person to believe another to be his agent. Ratification of agent's act. Ratification of part of a 981. Ratification can be made only in the manner that would have been necessary to confer an original authority for the act ratified,' or by accepting the benefit of the act.' 1 Story Ag., § 242; Despatch Line v. Bellamy, 12 N. H., 232. See Newton v. Bronson, 13 N. Y., 595; Blood v. Goodrich, 20 id., 251. Wend., 68; 12 id., 525; Wells v. Evans, 2 Bennett v. Judson, 21 N. Y., 238. § 982. Ratification of part of an indivisible transaction transaction. is a ratification of the whole. Farmers' Loan Co. v. Walworth, 1 N. Y., 447; Story Ag., 250. See Bennett v. Judson, 21 N. Y., 238; Condit v. Baldwin, id., 231. not to work § 983. No unauthorized act can be made valid, retro- Ratification spectively, to the prejudice of third persons, without their injury to consent. This is a broader rule than perhaps at present exists. § 984. The principal is deemed to ratify all the acts of his agent by retaining the benefit of such acts after notice thereof. Bennett v. Judson, 21 N. Y., 238; Clarke v. Van Reims- third per sons. Ratification ing benefit by retain of agent's acts. of ratifica tion. § 985. Ratification may be rescinded only when made Rescission with an imperfect knowledge of the facts of the transaction ratified. Story on Agency, §§ 242, 250. See Commercial Bank ARTICLE II. AUTHORITY OF THE AGENT. SECTION 986. Measure of agent's authority, actual or ostensible. 988. Agent's necessary authority. 989. Agent's power to disobey instructions. 990. Authority to be construed by its specific rather than by its general terms. 991. Construction of a general authority. 992. Agent can not have authority to defraud principal. 993. Authority to make contract under seal. 994. Authority to warrant principal's title, &c. 995. Authority of agent, general or special, to receive price of agent's actual or § 986. The agent has such authority as the principal Measure of actually or ostensibly confers upon him. Actual authority authority is such as the principal intentionally confers upon the ostensible. agent, or intentionally, or by want of ordinary care, allows the agent to believe himself to possess. Ostensible Agent's Agent's necessary authority. authority is such as he intentionally, or by want of ordinary care, causes or allows a third person to believe the agent to possess.1 'Farm. & Mech. B'k v. Butch. & Drov. B'k, 16 N. Y., 125; Beaufort v. Neeld, 12 Clark & Fin., 290; Sickens v. Irving, 7 C. B. (N. S.), 171, 173. § 987. Every agent has ostensibly such authority as is defined by this article, except as to persons who have notice, or are bound to take notice, of restrictions upon his authority. Dingle v. Hare, 7 C. B. (N. S.), 159. § 988. An agent has authority to do everything necessary, or proper and usual in the ordinary course of business, for effecting the purpose of his agency. Story on Agency, §§ 85, 86, 96, 97; Dingle v. Hare, 7 C. B. (N. S.), 159. See Horton v. Morgan, 19 N. Y., 170; Waring v. Mason, 18 Wend., 434; Graves v. Legg, 2 H. & N., 210; Taylor v. Stray, 2 C. B.(N S.), 191; Pollock v. Stables, 12 Q. B., 765; Bayliffe v. Butterworth, 1 Exch., 428; Sutton v. Tatham, 10 Ad. & El., 27; Bayley v. Wilkins, 7 C. B., 886. See, however, Sweeting v. Pearce, 7 C. B. (N. S.), 449; Partridge v. Bank of England, 9 Q. B., 396. 989. Unless he is expressly deprived thereof, an agent structions. has power to disobey instructions in dealing with the subject of the agency, in cases where it is clearly for the interest of his principal that he should do so, and there is not time to communicate with the principal. Agent's power to disobey in Authority to be construed by Code La., 2975, 2980; Drummond v. Wood, 2 Caines, 310. § 990. When an authority is given partly in general, and partly in specific terms, the general authority gives no its general higher powers than those specifically mentioned. its specifc rather than terms. Construc tion of a general authority. Sto. Agency, § 71; Stair Inst., B. 1, t. 12, § 15. § 991. An authority expressed in general terms does not include an authority to define the scope of the agency.' Nor does it include an authority to the agent to act in his own name, unless it is the usual course of business to do so." 'Supervisors of Rensselaer v. Bates, 17 N. Y., 246; Me chanics' Bk. v. New Haven R. R., 13 N. Y., 599; Grant v. Norway, 10 C. B., 665; Coleman v. Riches, 16 id., 104. 'Horton v. Morgan, 19 N. Y., 170; Whitehouse v. Moore, 13 Abb. Pr., 142. § 992. The agent can never have authority to defraud Agent canthe principal. not have authority to defraud principal. § 993. An authority to enter into a contract under seal Authority can only be given by an instrument under seal. to make contract under seal. Authority to warrant title, &c. § 994. An authority to sell personal property includes authority to warrant the principal's title, the quality and principal's quantity of the property, and an authority to sell and convey real property includes authority to give the usual covenants of warranty. Leroy v. Beard, 8 How. (U. S.), 451; Waring v. Mason, $995. If the thing sold is put in the possession of the agent by the principal, a general agent to sell has authority to receive the price; and a special agent has authority to receive the price on delivery of the thing,' but not afterwards. Authority general or receive property. of agent, special, to price of 1 1 Peck v. Harriott, 6 Serg. & R., 149. ARTICLE III. MUTUAL OBLIGATIONS OF THE PRINCIPAL AND THIRD PERSONS. SECTION 996. Principal, how affected by acts of agent within the scope 997. Knowledge of the principal is knowledge of the agent, &c. sible authority. 1001. Obligation of principal when exclusive credit is given to agent. of his agency. 1003. Effect of a written instrument by which the agent intends 1004. Principal's responsibility for agent's negligence or omission. the agent. § 996. The agent represents the principal for all purposes within the scope of his actual or ostensible' authority. All the rights and liabilities' which would accrue to the agent Principal ed by acts within the how affect of agent |