one be estopped in such a case? If one ratifies, from what time does the contract obligation date? If one refuses to ratify, what are the third party's rights?

Problem 3. A is the promoter of an intended corporation. He makes a contract for it. When it is duly chartered the corporation ratifies the contract. Is it liable for a subsequent breach of the contract?

Problem 4. A without authority makes a contract in his own name but intending it for the benefit of P. When P hears of it he ratifies it. Is P bound?

Problem 5. A without authority conveyed P's land to X. P received the purchase money. X claims this was a ratification. Is it so?

121. What is a wife's implied authority as agent? an infant child's? an unpaid vendor's?

122. How may an agency be terminated by act of the parties? If a principal terminates it, what are the rights of the agent? of third parties? If the agent terminates it before the contract expires, what may he recover for services already rendered? What is the effect of the death of either party? of illness? Effect of impossibility?

Problem 6. P authorized A to sell his lands. Later he also authorized B to sell them. On September 9 A sold them to X. On September 10 B sold them to Y. P conveyed to X, and Y sues P for breach of contract. Result?

Problem 7. P authorizes A to receive payments of X. P dies. X pays A, neither knowing of P's death. Is the payment binding upon P's estate? 123. What is an irrevocable agency? What is a power coupled with an interest? Illustrate.

Problem 8. P borrowed $2000 of A, and gave the latter a power to collect certain rents and pay himself from the proceeds. P died. Was the agency to collect the rents terminated? Suppose a tenant had paid rent to A after P's death?

124. What are the obligations of the principal to the agent? What are an agent's damages when the principal wrongfully revokes the agency? When an agency is revoked by impossibility or by the death of the principal how much may an agent recover? What is reimbursement? What is indemnity?

Problem 9. A agrees to work for P for a year at $20 a month. At the end of four months A quits the employment without cause. How much may A recover of P?

Problem 10. In a similar case P discharges A without cause at the end of four months. How much may A recover?

125. What are the agent's duties? Illustrate each. If an agent acts for his principal and also for a third person, what is the result? If an agent makes a secret profit, what is the result? May an agent delegate his duties?

Explain and illustrate. What is a del credere agency? How does it differ from a sale? What are the obligations of a gratuitous agent?

Problem 11. P directs A to pay taxes on P's land. A neglects to do so. The lands are sold for taxes. A bids them in and takes a tax deed. Is it good against P?

Problem 12. A sold for P certain prize packages which it was illegal to sell, and received the money for them. P sues A for the money. A sets up the illegality. Result?

Problem 13. P authorizes A to accept bills of exchange drawn on P. When a bill comes in, A decides to accept it, and tells B, a clerk, to write the acceptance. B writes, "Accepted, P, by B." Is P bound? How would it be if A had told B to exercise his judgment and accept bills and B had accepted this?

126. State the rules as to a principal's liability to third persons for the acts of his agent. Illustrate.

127. How is an agent's apparent authority determined? What is actual authority and how determined? What are incidental powers? Illustrate. What are customary powers? What are powers arising from the conduct of the principal? Illustrate. What is the distinction between general and special agents? Illustrate.

Problem 14. P gives A general authority to sell goods. A sells them to X and warrants them. Is P bound by the warranty?

Problem 15. P directs A to loan money and take a note and mortgage. A does so. The note and mortgage remain in A's hands. The borrower pays A. Is P bound by this payment?

Problem 16. P authorizes A to make collections. X gives A a check payable to the order of P. A indorses the check in P's name, obtains the money, and absconds. Does the loss fall upon P or the bank?

128. Define factor. Explain his powers. Define broker. Distinguish from factor. Define auctioneer. Whose agent is he? Define attorney at law and state some of his powers. State the powers of a bank cashier.

Problem 17. A broker is authorized by P to sell goods and sells them to X. P delivers the goods to X. The broker then collects the price from X and absconds. P sues X for the price. Can he recover?

Problem 18. P authorized an auctioneer to sell his farm for $500 cash down, balance in thirty days. These terms were publicly stated at the time of the auction. The auctioneer sold to X for $3000, and took X's check for the $500. X had no funds in bank to meet the check, but two days later deposited funds and the check was paid to the auctioneer. Meanwhile P had learned of the transaction and repudiated the sale. X now sues P for breach of contract.

129. What is an undisclosed principal? State the general rule as to the liability of an undisclosed principal. State the general rule as to his rights. State the exceptions and illustrate each.

Problem 19. P owns a hotel. He conducts it in the name of A, and it is supposed that A is the proprietor. X sells cigars on credit to A for the hotel. P has forbidden A to buy cigars on credit. Is P liable to X for the cigars?

Problem 20. In the above case P, after learning that A bought on credit, settled with the agent, paying him in full for the cost of the cigars. Can X then recover of P?

Problem 21. In the above case (Problem 19) X, after learning that P is the true principal, sues A and obtains a judgment against him. This remains unsatisfied, and he then sues P. Can he maintain this action?

Problem 22. In the above case (Problem 19) X warranted the cigars. They turned out to be inferior to the warranty. Can P recover against X for breach of the warranty?

Problem 23. In the above case (Problem 22) the agent, before X knows that P is the true principal, settles with X for the breach of warranty. Can P now sue X?

130. Is the principal liable for the frauds of the agent committed for the principal's benefit? for the agent's benefit? Illustrate.

Problem 24. P authorizes A to sell his land. A sells to X and fraudulently represents the land to be well timbered and well watered. When X discovers the fraud he sues P, who has received the purchase money without knowing of his agent's fraud. Is P liable to X in this action for deceit ?

131. How is an agent liable to the third person upon an unauthorized contract? How is he liable if he deals in the name of a fictitious principal? How is he liable if he signs in his own name a sealed or negotiable instrument?

Problem 25. P authorizes A to issue insurance. A without authority represents to X that he may keep petroleum upon the insured premises. X's premises burn. P successfully defends an action upon the policy because X kept petroleum. X sues A for breach of his warranty of authority to make such representation. Result?

132. Who are liable on an authorized written or oral contract made by an agent in his own name?

CHAPTER XI

MASTER AND SERVANT

I. INJURIES TO THIRD PERSONS

133. Negligent torts by servants. If in the conduct of his master's business a servant negligently injures a third person (other than a fellow-servant), the master is liable to the injured person; the servant is of course also liable, because every one is liable for his own torts. But if the injury is due to some contributing negligence of the third person, he cannot recover from either the master or the servant.

Examples: 1. A railway engineer negligently runs over X at a railway crossing. The railway company is liable to X. The engineer is also liable. 2. A workman negligently allows a brick to fall from a building into the street. It strikes and injures X. The employer of the negligent workman is liable to X. The workman also is liable.

3. A servant at a hotel negligently spills soup upon a guest's dress. The hotel keeper is liable for the damage. The servant also is liable.

4. X negligently fails to look and listen at a railway crossing. The engineer negligently fails to sound a signal. X is struck and injured by the locomotive. He cannot recover because of his contributory negligence.

134. Willful torts by servants. A master is liable for willful torts committed by his servant in the course of the employment and in the supposed furtherance thereof. If the servant is acting for the master and supposes, however mistakenly, that his act will further the master's interests, the master is liable.

Examples: 1. X's vehicle obstructs the M. Street Ry. Co.'s track. S is motorman on one of its cars. S orders X to get off the track. There is a dispute and S purposely drives his car against X's vehicle and damages it. The Ry. Co. is liable if S did this in order to get a clear track and make his schedule time. S also is liable for his own tort.

2. S sells tickets for the M. Elevated Ry. X buys a ticket and lays down a bill. S gives X the change and then mistakenly thinks the bill is

counterfeit and has X arrested. The Ry. Co. is liable for false imprisonment if S did this in order to get good money for the ticket; but if S did it to serve the public and punish a supposed criminal, the Ry. Co. is not liable. In either case S is personally liable.

A public carrier of passengers is liable for any willful injury done to a passenger by one of its employees, whether done in the supposed discharge of a duty or out of personal malice. The carrier owes a very high duty to passengers.

Example 3. A street-car conductor sees one of his enemies on the street car and assaults him to pay off an old grudge. The street-car company is liable. The conductor is of course personally liable.

II. INJURIES TO SERVANTS

135. Injury to one servant by another. The master is not liable to one servant for an injury occasioned by the negligence of a fellow-servant. He is liable for an injury occasioned by the negligence of a vice principal.

A vice principal is one who is charged by the master with the performance of any of these duties: (a) providing a safe place to work; (b) providing safe tools; (c) providing a sufficient number of competent servants; (d) providing suitable rules and regulations to govern the service; (e) providing inspection and repair of instrumentalities; (ƒ) providing special warning of any extraordinary danger. If one charged with performing any of these duties is negligent in the performance thereof and an employee is injured in consequence of such negligence, the master is liable. The master does not insure safety in these respects; he insures that due care will be taken.

A fellow-servant is one who performs operative acts. If in operating machinery or in any similar act one fellow-servant injures another, the master is not liable. It is said that a servant in entering the employment assumes the risk as to the negligence of his fellow-servants.

Examples: 1. S and T are both employed by M. S is told to repair a machine and does so negligently. The machine breaks down while T is operating it and injures T. M is liable to T. In repairing the machine S was a vice principal.