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If the property is still in the hands of the third party, an action

of replevin will lie for its recovery or an action of trover for

Its value. If it has been sold by the third party, the tort may

be waived and an action of assumpsit brought as for money

had and received;^ and in some jurisdictions when the goods

liave not been sold, but have been kept or consumed, the prin-

cipal may waive the tort and sue in assumpsit as for goods

sold and delivered.'' If the third party took the property with

notice of the principal's rights or without giving a valuable

consideration, and has converted it into another form of prop-

erty, equity will, in many cases, fasten a trust upon the

property so obtained, and enforce the trust in favor of the

principal.'^ In the case of money, an action for money had

1 Cartwright v. AVilmerding, 24 N. Y. 521.

2 Patterson v. Tash, 2 Str. 1178; Newbold v. Wright, 4 Rawle (Pa.),

195; Gray r. Agnew, 95 111. 315.

8 Pickering v. Busk, 15 East, 38; Martini v. Coles, 1 M. & S. 140;

Horr V. Barker, 11 Cal. 393.

* See for an admirable review of this legislation, and its relation to the

doctrines of estoppel, Ewart on Estoppel, pp. 353-369.

^ Keener on Quasi-Cont., p. 170 et seq.

Ibid., pp. 192-195.

' Post, В§ 177.

LIABILITY OF TIIIUD PARTY. 223

and received will lie against successive holders until it comes

into the hands of a bona fide holder for value. ^

В§ 173. Wrongs of fraud and malice.

The third person may become liable to the principal in tort,

aside from cases of conversion of property already noticed,

either: (1) for a fraud connected with a contract entered into

between the agent and the third person in behalf of the prin-

cipal ; (2) for a fraud committed on the principal by collusion

between the agent and the third person ; (3) for an unlawful

Interference with the agent in the discharge of his duties, or

with the contract of agency. These classes of torts generally

Involve either fraud or malice, — fraud in inducing the prin-

cipal to enter into a contract, or malice in unlawfully inter-

fering with a contract which the principal has already made.

В§ 174. Frauds in making contract.

We have already seen that a principal is liable for the

frauds of his agent committed while making contracts with

third persons. Conversely the third person is liable to the

principal for frauds practised on the agent while the latter

Is acting in behalf of the principal, since every person is liable

for his own torts to the person injured thereby. This proposi-

tion needs no discussion. It extends to frauds for which an

action for deceit will lie, as well as to those for which the

remedy is merely rescission of the contract.^

В§ 175. Collusive fraud between agent and third person.

The third person and the agent may combine to commit

a fraud upon the principal. In such a case they are joint tort

feasors, and both are liable for the injury. Accordingly the

principal may maintain an action against the third person,

or the agent, or both jointly.^ The fact that the agent may be

held for his breach of trust does not prevent a recovery

^ Keener on Quasi-Cont., pp. 183-188.

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