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V. Hottendorf, 74 n. C. 588; McHany V. Schenck, 88 111. 357; Law-

rence v. Johnson, 64 111. 351; Smith v. Kidd, 68 N. Y. 130, 23 Am.

Rep. 157.

Authority to receive payment is not implied merely

from the fact that the agent sold the goods for which

the money is due, or negotiated the contract or loan

upon which it is payable. In the latter case the fact

that the securities, as for example the bond and mort-

gage, are left in the possession of the agent who nego-

tiated the loan, will justify an inference of authority

to receive payments upon them, but the party paying

must see at his peril that the securities are in the pos-

session of the agent on each occasion when he pays.

Thus a traveling salesman, or "drummer," authorized to solicit

orders for goods to be sent by his principal, and who takes such an

order for goods which are so supplied, has thereby no implied power

to subsequently collect payment for them. McKindly v. Dunham,

55 Wis. 515, 42 Am. Rep. 740, Cas. Ag. 399; Janney v. Boyd, 30 Minn.

319; Butler v. Donnan, 68 Mo. 298. 30 Am. Rep. 795; Simon v. John-

S4 CONSTRUCTION OF THE AUTHORITY. [§§ 155-157.

son, 105 Ala. 344, 16 So. Rep. 884, 53 Am. St. Rep. 125; Kornemann

v. Monaghan, 24 Mich. 36. As to the implied authority of a loan

agent to receive payment, see Crane v. Gruenewald, 120 N. Y. 274,

Cas. Ag. 87; Smith v. Kidd, 68 N. Y. 130, 23 Am. Rep. 157; Double-

day v. Kress, 50 N. Y. 410, 10 Am. Rep. 502; Security Co. v. Graybeal,

85 Iowa 543, 52 N. W. Rep. 497, 39 Am. St. Rep. 311.

§ 156. Authority to make negotiable paper. — Au-

thority to make or endorse negotiable paper is not to be

lightly inferred. It can be implied only when abso-

lutely necessary to the execution of the main power.

And when expressly conferred it is subject to a very

strict construction, and the agent can bind the princi-

pal only when he has acted within the precise limits of

his authority.

See Jackson v. Bank, 92 Tenn. 154, 18 L. R. A. 663, Cas. Ag. 415;

Pickle v. Muse, 88 Tenn. 380, 17 Am. St. Rep. 900; King v. Sparks,

17 Ca. 285, 4 Am. St. Rep. 85, Cas. Ag. 418; Helena Nat'l Bank V.

Rocky Mt. Tel. Co., 20 Mont. 379, 63 Am. St. Rep. 628.

§ 157. Authority to manage business. — Authority

to manage the principal's business does not imply power

to make negotiable paper; or to sell the business; or to

borrow money unless absolutely necessary; or to pledge

or mortgage the principal's property; or to make any

contract not within the usual scope of the business.

See Brockway v. Mullin, 46 N. J. L. 448, 50 Am. Rep. 442, Cas. Ag.

419; Vescelius v. Martin, 11 Colo. 391, Cas. Ag. 422; New York Mine

v. Bank, 39 Mich. 644, Cas. Ag. 423; Helena Nat. Bank v. Rocky Mt.

Tel Co. supra; Glidden & Joy Co. v. Nat. Bank, 16 C. C. A., 534, 32

U. S. App. 654, 69 Fed. Rep. 912.

.

fY/sff

В§8158-159.] EXECUTION OF THE AUTHORITY.

CHAPTER X.

OF THE EXECUTION OF THE AUTHORITY.

i 158. In general.

159. Excessive or defective ex-

ecution.

160. Execution of written in-

struments.

161. Execution of sealed in-

struments.

В§ 1C2. Execution of negotiable

instruments.

163. Execution of simple con-

tracts.

1G4. Parol evidence to explain.

§ 158. In general. — It is the general duty of the

agent to execute the authority in the name, and for the

benefit of the principal, and to confine his acts within

the scope of the authority conferred upon him.

It is also especially to the interest of the agent to so

execute the authority as to bind the principal and not

himself.

§ 159. Excessive or defective execution. — The exe-

cution of the authority in a given case may fail either

because the agent has neglected to fully exercise his

authority, or because he has exceeded it. A deficient

execution will ordinarily not bind the principal, though

it may so operate as to bind the agent personally. An

excessive execution will not necessarily be defective.

If there has been a complete execution of the power

and the excess can be distinguished and disregarded,

the authorized portion may be given effect.

See Thomas v. Joslin, 30 Minn. 388, Cas. Ag. 427.

The execution of the authority may also fail because

the agent has attempted something wholly beyond the

power conferred, or has undertaken to do that which

a proper construction of his authority will not justify.

86 EXECUTION OF THE AUTHORITY. [§§ 159-160.

Thus a power from two jointly to deal with their

joint interests will not justify dealing with the sep-

arate interests of one only; and, conversely, a power

from several to deal with their separate interests will

not justify a contract which assumes to bind them

jointly.

See Gilbert v. How, 45 Minn. 121, 47 N. W. Rep. 643, 22 Am. St.

Rep. 724, Cas. Ag. 380; Harris v. Johnston, 54 Minn. 177, 40 Am. St.

Rep. 312.

§ 160. Execution of written instruments.— It is in

the execution of written instruments that question is

most likely to arise, because they show on their face

precisely what was done and are less open to explana-

tion by the surrounding circumstances. It may often

happen, therefore, that the agent may, through inad-

vertence, ignorance or mistake, so execute as to bind

his principal, or himself, or no one, even when his desire

and intention were to bind the principal.

To bind the principal, the instrument should be made

in the name of the principal and not in the name of the

agent ; the promises or undertakings should be made in

the name of the principal ; and the signature should be

that of the principal, though affixed by the hand of the

agent.

If William White is principal and Benjamin Black

is the agent, the proper signature would be: William

White, by Benjamin Black, his agent, (or, his attorney

in fact). The words his agent or his attorney in fact,

though proper and desirable, might be omitted without

destroying the effect.

On the other hand, to sign thus: Benjamin Black,

Agent, is clearly insufficient to bind the principal, but

would ordinarily bind the agent. So of a signature

thus: Benjamin Black, Agent of William White. Here

the word agent, or Agent of William White, simply

serves to show who Benjamin Black is ; they are simply

§§160-162.] EXECUTION OF THE AUTHORITY 87

descriptio personae. To sign Benjamin Black, Agent

for William White , is also usually regarded as insuffi-

cient to bind William While, and for the same reason.

See Hobson v. Hassett, 76 Cal. 203, 9 Am. St. Rep. 103, Cas. Ag.

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