14. What is a "power of attorney?"

15. To what is a servant entitled, where he leaves his employment before the end of his term of service?

16. What remedy has a servant where he is rightfully discharged but some part of his wages are still due?

17. What remedy has a servant who has been wrongfully discharged before his term of service has expired?

18. What is the liability of a third person who interferes with fulfillment of a contract for personal services?

19. When is it necessary to give notice of an intention to terminate a contract for personal services?

20. What is the law in regard to allowing a workman a lien on the property on which he works to secure the payment of his wages?

CASES

(GIVE REASONS FOR YOUR ANSWERS)

1. B, a boy fourteen years of age, who was employed in A's office, was instructed to negotiate for the purchase of 500 bales of cotton at a certain price. The boy made the purchase, but A sought to avoid the contract because of a decline in the price of cotton. When A was sued he set up as a defense that the boy, being a minor, had no capacity to contract. Is his defense good?

2. A of Washington wrote to a real estate agent of Chicago to sell the house and lot No. 260 Rush Street. The only authority possessed by the real estate agent to negotiate the sale was the letter thus written. The property was sold and a deed executed by the agent in the name of his principal. Is the sale valid?

3. C was employed by the S Company to sell sewing machines on commission, and agreed to “give his exclusive time and best energies to said business." He also agreed to “employ himself under the direction of the said S Company, and under such rules and instructions as it or its manager at M shall prescribe." Was C a servant or an agent?

4. W was an infant and owner of a piece of land. The father of W executed a title bond for the sale of the land and signed W's name to it. After W became of age he ratified the conveyance of the land. The bond was in the name of the father. After ratifying the bond W sold the land to another person. Can an infant appoint an agent to sell land, and was the first conveyance good?

5. A sold B a piece of land. The deed was signed by A's daughter in A's presence and by his direction. The conveyance was objected to on the ground that the daughter's authority to sign the deed was not under seal. Was this a valid objection?

6. Plaintiff contracted to work for the defendant for seven months. He quit at the end of three months without cause. He then sued the defendant for three months' wages. Is he entitled to recover?

7. C was under contract to work for G for one year. He was discharged without cause at the end of six months. He made no effort to secure work elsewhere. He waited until the end of the year and sued G for his wages for the entire year. Is he entitled to wages for the full time?

CHAPTER XXVII

DUTIES AND LIABILITIES ARISING OUT OF THE

RELATION

300. Authority of agents. The authority of agents embraces the whole subject of (a) the rights of principals against their agents, (b) the rights of agents against their principals, (c) the rights of third persons against principals, (d) the rights of principals against third persons, (e) the rights of third persons against agents, and (f) the rights of agents against third persons. The extent of an agent's authority and power depends upon the nature and character of the appointment, and whether he is a general or special agent. Hence, agents are thus divided into two classes, viz., (1) General; (2) Special.

301. Authority of general agents. A general agent has not only the authority conferred upon him by his principal, but all the powers that are usually exercised by agents in that particular line of business or employment. This class includes the great mass of commercial agents.

302. Authority of special agents. A special agent is one who has only the authority committed to him by his principal. Persons dealing with this class of agents are put upon inquiry to know what their powers are. They are not clothed with any implied authority.

The distinction between a general and special agent is that the former, having a wider scope, both of duty and authority, represents his principal in all matters of a particular kind, or growing out of a particular employment, and this may be in one or more places; while the latter is one whose authority is definitely limited, and whose duty is specified. A person who is authorized to execute all deeds, sign all contracts or purchase all goods required in a particular trade, business or employment is a general agent. But a person authorized to execute a particular contract, or to purchase a particular parcel of goods is

a special agent. But it is not, however, the doing of a particular thing that is the test whether or not a person be a special agent. A lawyer, employed to try a case, is a general agent, although employed for a particular purpose.

PRINCIPAL'S LIABILITY TO THIRD PERSON

303. On contracts made by general agents. Rule: The prevailing principle is that an agent, known to be such, and acting within the scope of his authority, but through a known principal, binds that principal and not himself.

The acts of an agent, done within the scope of his employment, and within the limits of the authority which he possesses, are regarded as the acts of the principal, and not the acts of the agent. The agent, in this case, incurs no personal responsibility whatever.

In case of a general agent, the principal will be bound, although the agent exceeds the authority given, so long as he does not go beyond the powers which are usual and customary in his business such as are exercised by other agents of his vocation.

A, the manager of a branch of B & Co.'s shoe stores, is instructed not to warrant a certain case of shoes which the firm ships him. It has been the practice and custom to give a warranty with all shoes sold. A, contrary to the express instructions, warrants them. The firm is liable for the warranty so given.

A general agent's authority cannot be limited by secret instructions. A third person is not bound to assume that there are secret instructions. It is immaterial to him what secret arrangements have been made between the agent and his principal, and he need not concern himself with the written authority so long as the act done is within the apparent scope of the agent's authority. A dry goods firm instructed its general manager to purchase a certain lot of dry goods. The manager, instead, bought a stock of groceries. The firm would not be liable, because the agent did not keep within the scope of the business for which he was appointed. But had be bought dry goods, even a much larger amount than he was instructed to buy, the

firm would be liable, because that would have been within the general scope of his employment.

304. On contracts made by special agents. Rule: The principal is not liable on contracts made by a special agent if he in any way exceed the express authority given him.

A special agent has no implied power like a general agent. Everyone dealing with such an agent is bound at his peril to ascertain the scope of his authority. He who deals with a special agent does so at his own risk.

A employed B to sell his farm for $10,000.00 cash. B exchanged A's farm for another and a money payment of $5,000.00. A is not bound by the bargain as B's instructions were to sell for cash only.

305. Liability of undisclosed principal. Rule: An undisclosed principal is bound by the acts of his agent when he is discovered, and so he may at any time make himself known and obtain the fruits of his agent's work.

If a third party has dealt with an agent, supposing him to be principal then such third party is entitled to his set-off and other equities as against the principal, for the principal must run these risks, since it is he who puts the agent forward to be trusted.

WRONGFUL ACTS OF AGENTS

306. General liability. Hitherto we have only considered the responsibility of the principal to third parties on contracts made by their agents. But he is also liable, and that to a considerable extent, for wrongs committed by his agents while engaged in his services. He will be so in every instance in which he has expressly commanded the wrong to be done, or gives orders which can be executed only by its commission.

307. Negligence of agent. Rule: The principal is liable to third persons for negligence and omission of duty of the agent, if the same be committed in the regular course of his employment and within the scope of his authority, although he did not authorize or know of such misconduct, or even though he forbade it.