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1. In Agencies generally.

В§ 100. General considerations.

The normal case of agency is that in which the agent acts

for a disclosed principal, in whose name, and in whose behalf

he enters into contracts with third persons. In so doing the

agent may (1) act within the scope of his actual authority,

or (2) act outside of the scope of his actual, but within the

scope of his apparent or ostensible authority, or (3) act

outside of the scope of his actual or his ostensible authority.

The legal effect of the contract will vary in accordance with

the variance in these three particulars.

Briefly stated, the doctrine is that the principal is liable

upon all contracts made by his agent within the scope of

the actual authority ; and upon all contracts made by his

agent within the scope of the ostensible or apparent author-

ity,i unless the third person has notice that the agent is

exceeding his authority.^ But the principal is not liable

upon contracts made by his agent beyond the scope of the

actual or the ostensible authority.^

1 Trickett v. Tomlinsoii, 13 C. B. n. s. 663; Whitehead r. Tiickett, 15

East, 400; Fenn v. Harrison, 4 T. R. 177; Huntley v. Mathias, 90 N. C.

101; Bentley v. Doggett, 51 Wis. 224; Johnston v. Milwaukee, &c. Co.,

46 Neb. 480.

2 Jordan v. Norton, 4 M. & W. 155; CoUen y. Gardner, 21 Beav. 540;

Strauss v. Francis, L. R. 1 Q. B. 379 ; Rust v. Eaton, 24 Fed. R. 830.

8 Stubbing v. Ileintz, 1 Peake, 66; Fenn v. Harrison, 3 T. R. 757;

Batty V. Carswell, 2 Johns. (N. Y ) 48; Martin v. Great Falls Mfg. Co.,

9 N. H. 51 ; Graves v. Horton, 38 Minn. 66.

128 PRINCirAL AND THIRD PARTY.

В§ 101. Contracts actually authorized.

It is olniuus that if the ju'liu'lpal has actually authorized

the coutract speeilically or generally, that he will be bound

by it in the same manner as if he had made it in person. ^

The agent in such a case is merely an inslrumentalily which

correctly manifests the will of the jji-incipal. This is the

object of the agency and the object is attained. Every con-

sideration that leads to the enforcement of contracts made

in person calls e(pially for the enforcement of the contract

made under these circumstances. It is immaterial by what

means the agent derives his authority so long as it is suHi-

cient. It may spring from the consent of the princii)al or

from the necessities of the situation.''^

В§102. Contracts apparently authorized: estoppel.

It may ha[)pen, however, that the princi])al has authoi'ized

his agent to make a contract or to make contracts, but has

placed certain restrictions or limitations upon the agent as

to the terms of the transaction. Tliese restrictions the agent

may disregard. In such a case the will of the j)rincipal is

not correctly manifested. Is he nevertheless bound by the

contract ?

The solution of this prol)lem de})ends upon a consideration

much more vital than the interests or rights of the principal.

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