It comes into the hands of a bona fide holder.

See Naltner v. Dolan, 108 Ind. 500, 58 Am. Rep. 61, Cas. Ag. 623;

Farmer's Bank v. King, 57 Penn. 202, 98 Am. Dec. 215, Cas. Ag. 590;

Roca v. Byrne, 145 N. Y. 182, 39 N. E. Rep. 812, 45 Am. St. Rep. 599.

\/ 5. To give Notice to his Principal.

§ 189. Duty to give notice. — It is th e duty of the

agent to give the principal timely notice of all facts

coming to the agent's knowledge and relating to the

subject matter of the agency which it is material for

the principal to know for the protection of his interests.

This duty is not only important in itself, but it fur-

nishes the foundation for the rule, hereafter to be con-

sidered (В§ 21(5), that notice to the agent is notice to

the principal.

See Devall v. Burbridge, 4 Watts & S. (Pa.) 305, Cas. Ag. 499;

ITenry v. Allen, 151 N. Y. 1, 45 N. E. Rep. 355, 36 L. R. A. 658; Amer-

ican Surety Co. v. Pauly, 170 U. S. 133, 42 L. ed. 977; Enos v. St.

Paul, etc., Ins. Co., 4 S. Dak. 639, 57 N. W. Rep. 919, 46 Am. St. Rep.

-796.

В§ 190.]

DUTIES OF AGENT TO THIRD PERSONS.

101

CHAPTER XII.

OF THE DUTIES AND LIABILITIES OF THE AGENT TO THIRD

PERSONS.

В§ 190. In general.

I. LIABILITY IN CONTRACT.

191. What cases may occur.

1. Where he makes a con-

tract without authority.

192. Basis of liability.

193. How want of authority

may arise.

194. What forms present them-

selves.

195. Liability of agent.

196. In what form of action

liable.

197. When liable on the con-

tract itself.

198. Limitations.

2. Where there was no re-

sponsible principal.

199. Agent liable if no princi-

pal in existence.

200. Principal dead.

3. Where agent pledges

his personal responsi-

bility.

201. Agent may bind himself.

202-203. Effect of not disclos-

ing existence or name

of principal.

§ 190. In general. — The ordinary purpose of the

agent is to bring his principal into relations and obliga-

tions to third persons, but not to bind or obligate him-

self. He may, however, so conduct himself — usually

unintentionally but sometimes by design— as to incur

В§ 204. Agent of foreign principal.

205. Presumption that princi-

pal was to be bound.

206. Presumption stronger in

case of public agent.

4. Where Agent Has Obtained

Money From Third Per-

son.

207. When money voluntarily

paid by mistake may be

recovered.

208. Money obtained illegally.

5. Where Agent Has Received

Money For Third Person.

209. Money delivered to agent

by principal for third

person.

II. IN TOBT.

210. Agent not liable in tort

for breach of duty ow-

ing to principal alone.

211. Non-feasance — Mis-feas-

ance.

212. Trespass — Conversion.

213. How sued.

102 DUTIES OF AGENT TO THIRD PERSONS. [§§ 190-193.

such a liability. This liability, under varying circum-

stances, may be either (1) in contract or (2) in tort

I. LIABILITY IN CONTRACT.

§ 191. What cases may occur. — The agent may

make himself liable to third persons in contract,

either —

(1) Where he makes a contract without authority;

(2) Where he contracts in the name of a principal

having no legal existence;

(3) Where, though authorized to bind his principal

he expressly pledges his personal responsibility;

(4) Where he has obtained money for his principal

from the third person;

- (5) Where he has received money from his prin-

cipal for the third person.

Each of these cases will be separately considered.