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contracts must be of equal rank with the contract to be executed, hence to execute sealed instruments the agent's authority must be by contract under seal.

Some states have abolished the use of seals and an appointment by parol would be sufficient in those states. An instrument that would be valid without a seal may be executed by an agent appointed by parol, or if executed in the presence of the principal with his consent, the agent may attach a seal although appointed by parol.

17. How is the authority of an agent established by implication?

Should the principal, with full knowledge of all the facts, ratify the acts of the agent, as a result the agency is established, but one may infer the existence of an agency by the acts of the parties.

The acceptance and conversion, with such knowledge, of the proceeds of a contract to the principal's own use, or his knowingly standing by and tacitly consenting to the acts of one contracting in his name, would be reasonable grounds from which to imply that there was a contract of agency.

18. What is ratification and what acts may the principal ratify?

Ratification is some form of adoption by the principal of the unauthorized acts done by one who assumes to represent hiin.

The principal may ratify any act that he himself had power to do or liad power to delegate to another to do. As well as the contracts of the agent, the principal may ratify the torts of the agent, but such ratification cannot be made to the extent of freeing the agent from any penalty that may lawfully be inflicted upon him for the commission of an unlawful act nor of releasing him from liability to third parties. The principal cannot ratify part of a contract and repudiate part but must ratify all or none, nor can he ratify a void contract.

19. What should the principal do when an unauthorized act of the agent comes to his attention?

Within a reasonable time he should repudiate it, otherwise he will be deemed to have given his assent and thus to have ratified the act.

23. Can the principal ratify a forgery by the agent?

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If the laws of the state where the forgery is committed would permit the ratification of the forgery, the principal could do so but the state would not probably relinquish the right to prosecute the forger for the wrongful act.

21. Can an agent ratify the unauthorized act of a subagent?

If the act were one within the scope of the agent's authority he can ratify the act of the sub-agent.

22. What is the rule as to an agent delegating his authority?

This is not usually one of the implied powers of the agent. Agency being a personal trust it is not assumed that the authority can be redelegated. So, unless the terms of the contract expressly set forth the authority to appoint a subagent or the nature of the business to be performed involved the necessity of so doing, the agent who appoints a sub-agent would become directly responsible to him himself and the principal would not be bound by any of his acts unless he chose to ratify them.

Under no circumstances can the agent, without the consent of his principal, delegate his authority where the acts involve the exercise of a discretion or anything of the character of a trust which is in its nature personal to an agent.

23. How may the contract of agency be terminated?

The contract of agency may be terminated by agreement; by act of the parties; by operation of law.

By agreement the contract may terminate by completion of the subject matter or by the lapse of time.

By the act of the parties the contract may terminate by the revocation of the agent's authority by the principal or the renunciation of his authority by the agent.

By operation of law the contract may terminate by the death, insanity or bankruptcy of either principal or agent, or by the extinguishment of the subject matter.

24. When has the principal power to revoke the contract?

The principal generally has the power to revoke the agent's authority at any time. The principal having conferred this authority for his own purposes, should he for any reason desire to recall it, he may usually do so.

25. When has he the right to revoke the agent's authority?

The principal may have the power to revoke the agent's authority and at the same time not have the right to do so. In general, if the agency is coupled with an interest in the subject of the agency itself, as distinguished from an interest in the result thereof, then the principal has not the right to revoke. As where an agency is created for the collection of a debt and from which collection the agent is to reimburse himself for money advanced to the principal. This it should be noted is not an agency based on a mere compensation for a service performed. Agency being simply the relation between principal and agent established by a contract, the principal has no more right to break this contract than any other, and should he do so he can be made to answer to the agent for any damages accruing therefrom.

The principal not alone has the power but also has the right to revoke the agent's authority on the ground that the agent either is incompetent or is misconducting himself in the course of the agency.

If the contract be for an indefinite period, as a rule either party may terminate the contract without becoming responsible to the other.

26. How may the agent's authority be revoked?

No special form is necessary nor does it matter in what way the agent received his authority. It may be revoked in writing, orally or be implied from the acts of the principal.

Should a firm have agents the dissolution of the firm will revoke the agents' authority.

27. What is required of the principal on revoking the agent's authority?

As quickly as the principal gives notice to the agent his authority is revoked but such notice is not binding on third parties, hence it is necessary for the principal to give actual notice to those with whom the agent has dealt. An advertisement in the columns of a local newspaper would ordinarily be sufficient notice to the general public. A written or printed notice should be sent to former customers.

28. When has the agent the power and when the right to renounce the agency?

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The rule is similar to that respecting the principal and he may renounce his authority at any time. The law will not compel him to act for the principal, but he may be made to answer in damages for the breach of contract. lose the right to compensation for services previously rendered. The agent must notify the principal of the renunciation.

29. What is the immediate result of the death or bankruptcy of either principal or agent?

The death of the principal terminates the agency at once and the agent is presumed to have notice of the same. If the agency is coupled with an interest, on the death of the agent a legal representative may stand in his stead for the completion of the contract.

The bankruptcy of either principal or agent practically terminates the agency since the principal may no longer have confidence in the agent nor the public in the principal.

30. What is the chief duty of an agent to his principal?

The chief duty of an agent to his principal is to obey instructions and render an account of his acts. The work to be done is the principal's work, he has a right to require the agent to use such methods as he may direct, and should the agent pursue a different plan he will become responsible for any damage or loss that may follow.

In case of some unexpected contingency the agent may depart from the plan mapped out in order to best serve the principal's interests and, at the same time, not assume any unusual responsibility.

The agent is not required to do anything unlawful or immoral even though the principal give such instructions,

31. What is the force of instructions given secretly to the agent?

Instructions given secretly to the agent are binding on the agent, but to third parties, who have no notice of such instructions, they are of no force whatever.

32. What effect does custom have as to instructions given to the agent?

In the absence of instructions it is implied that the agent will conform to any well established custom or usage and such implication will protect third parties dealing with the agent.

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33. What is the agent's duty as to keeping accounts?

It is the duty of the agent to keep all accounts, vouchers and records necessary to give the principal, when reasonably requested, a satisfactory statement of all his dealings.

34. What is the rule if the agent should mingle his own and the principal's goods, or money, or both?

If the goods of the agent cannot be distinguished from those of the principal the principal may take all, or if in the handling of funds belonging to himself and the principal there should any loss accrue, the agent must bear the loss, even without proof of his negligence. Nor must the agent by act or implication represent the funds of the principal as being his own for in case of loss the agent must then bear it all. As, for example, the depositing of the principal's money in the name of the agent would make the agent responsible for its loss if the bank should fail.

35. For what degree of skill or diligence is the agent responsible?

It is the duty of the agent to bring to the performance of his work a reasonable degree of skill, care and diligence. This will vary as to the character of the thing to be done with due consideration for the conditions under which the work is to be performed.

36. What is the agent's duty as to being loyal to any trust reposed?

The agent must in no wise adopt any plan of dealing which would result in his securing an interest adverse to his principal's, nor use to his own material advantage the knowledge which he may acquire in the course of the business.

He cannot act for himself in the same transaction in which he assumes to represent his principal. He cannot take upon himself an incompatible duty or have an adverse interest or employment.

37. What is the agent's duty as to profits arising from the agency?

Except where the parties have agreed that the agent may retain his proper compensation the agent must answer to the principal for all profits arising from the business. Should the agent use the principal's money for any venture of his own the profits will belong to the principal, and if on

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