against unnecessary risks of injury. There is a duty on the part of a
master to protect his servant. An agent or servant assumes the risks
which naturally belong to the kind of work in which he is engaged. For
example, _A_ employs _B_ to work in a saw mill. _B_ assumes the risks
incident to the employment. If a log accidentally rolls on him, _A_ is
not liable in damages, or if _B_ carelessly cuts his hand on the saw,
_A_ is not responsible. But if the boiler explodes through carelessness
of _A_, or if the saw flies to pieces on account of wear, and injures
_B_, _A_ is liable.
It is said that a principal or master is obliged to furnish his agent
or servant with a reasonably safe place in which to work, and with
reasonably safe tools and instruments with which to work. If the
principal negligently fails to these things, and the servant is injured
without negligence and carelessness on his part, the principal is
liable to him in damages for any injuries.
=47. Duties and Liabilities of Principal to Third Persons.= When a
person employs another to act for him, he is liable to third persons
for the acts performed by the agent, so long as the agent acts within
his authority. If _A_ appoints _B_ his agent to purchase live stock,
_A_ must pay third persons for the live stock purchased in his name by
_B_. A person employing another to act as his agent is responsible to
third persons for acts performed by the agent, which are within the
apparent authority of the agent, as well as for the acts which are
within the actual authority. If _A_ appoints _B_ his agent to purchase
live stock and instructs him to purchase only hogs, but limits his
authority to pay over five cents per pound, and _B_ purchases at five
and a half cents from _C_, who does not know of this limitation, _A_
is bound by the contract. In giving an agent authority to do certain
things, the agency carries with it the customary or implied authority
to perform those acts incident to the general character of the agency.
Thus, authority to purchase usually carries with it authority to fix
the price. This is especially true of authority to sell.
Notice to an agent is notice to a principal. If an agent is authorized
to sell goods, and in making a sale, is notified by the purchaser that
the goods are purchased conditionally, in the absence of any special
instruction limiting the power of the agent to sell conditionally,
brought to the attention of the purchaser, the principal will be bound
by the condition.
A principal is liable to third persons for his agent's torts or
wrongful acts. If _A_ directs his agent _B_ to destroy _C's_ property,
_A_ is liable to _C_ for the damage done. A principal is not only
liable to third persons for the damages done under his express
direction by his agent, but he is also liable for the acts carelessly
done by the agent in the course of his employment. A street car company
employs _B_ as motorman. _B_, carelessly and negligently, while
operating a car runs over _C_. _A_ is liable for _B's_ negligent act. A
principal, however, is not liable for the wrongful acts of his agent,
performed outside of his employment. _A_, a street car company, employs
_B_ as conductor; _C_, standing on the street insults _B_. _B_ stops
his car, gets off and assaults and injures _C_. _A_ is not liable,
since _B_ did not commit the act complained of while in the course of
his employment, but went outside the course of his employment and acted
on his own behalf.
=48. Duties and Liabilities of Agent to Principal.= An agent must obey
the instructions of his principal. If he disobeys his instructions,
he is liable to his principal for losses sustained. For example, if
_A_ employs _B_ to sell flour at four dollars ($4.00) per barrel and
_B_ sells one hundred barrels at three dollars and seventy-five cents
($3.75), he must respond in damages to _A_ for twenty-five cents a
barrel. If, however, a discretion is given the agent, and he makes a
reasonable mistake in using his discretion, he is not liable. If his
instructions are not clear, and he carries out what he thinks are his
instructions, which prove not to be the desire or intention of his
principal, he is not liable.
An agent must account to his principal for money collected, and
for moneys or property coming into his possession by reason of his
agency. If he deposits money in his own name and it is lost through
a bank failure, he is responsible to his principal. If he carefully
deposits it in the name of his principal and the bank fails, he is not
responsible.
An agent must act carefully in the performance of his principal's work,
or as it is usually said, he must not act carelessly or negligently.
He must act as a reasonably prudent man would act, under similar
circumstances, or be liable to his principal in damages.
An agent must be loyal to his principal's interests. He cannot act
secretly for another. He cannot act secretly as agent for both parties
to a transaction. If he makes profits in his agency dealings, he must
account for them to his principal. _A_ employs _B_ to sell Christmas
novelties. _B_, shortly before Christmas receives a large order from
_C_, who offers _B_ one hundred dollars ($100.00) in excess of the
regular price, if the goods arrive the following day. _B_ succeeds in
having the goods reach _C_ the following day. _B_ must account for the
extra one hundred dollars ($100.00) to _A_, his principal.
An agent must faithfully carry out his agency. He is responsible for
failure to act loyally. _A_ employs _B_ to sell butter. _B_ obtains an
offer from _C_, a rival butter manufacturer, to commence work for him
on commission two weeks hence. _B_ tells his customers not to purchase
for two weeks, at which time he can make them a better price. _B_ is
liable to _A_ in damages for this act of disloyalty. He has broken his
contract.
An agent, who is employed to perform personal services, cannot transfer
his responsibility or agency to another.
One who agrees to act as agent for another without compensation,
cannot be forced to fulfil his agency. He is not liable in damages to
his principal for failure to act, but if he chooses to act without
compensation, he is liable if he acts with great negligence. If _A_
requests _B_ to drive his horse home and _B_ drives the horse and
leaves him without tying him, and the horse runs away and destroys the
carriage and ruins himself, _B_ is liable for gross negligence.
=49. Rights and Liabilities of Agent to Third Persons.= An agent
acting within the scope of his authority, in making contracts with
third persons, binds his principal by the contract, but does not bind
himself. _A_ is authorized by _B_ to purchase a horse. A purchases a
horse from _C_, notifying _C_ that he is purchasing as agent for _B_.
_C_ must look to _B_ for the purchase price, since _A_ acted solely as
agent and is not personally liable under the contract.
If an agent, intending to act as agent, makes a contract in his own
name, without informing the third party with whom he is dealing, of the
agency, he binds himself. Under these circumstances, he usually binds
his principal also. This question is discussed more at length under the
title "Undisclosed Principal." If _A_ is employed by _B_ to purchase
a horse, and _A_ purchases a horse from _C_ for two hundred dollars
($200.00), without telling _C_ of the agency, the purchase price to be
paid the following day, _A_ binds himself personally to pay _C_ the two
hundred dollars ($200.00) and _C_ is not obliged to look to _B_ for
payment.
If an agent, honestly believing he has authority to act as agent when
he has not, makes a contract as agent for his supposed principal, he
binds himself personally and not his principal. _A_ writes to _B_,
"Purchase for me _C's_ bay team, if same can be secured for two hundred
and fifty dollars ($250.00), half payable in six months." _B_ reads the
letter and purchases the team in the name of _A_ for two hundred and
fifty dollars cash ($250.00), overlooking the condition in _A's_ letter
that half was to be paid in six months. _B_ binds himself to _C_ and
does not bind _A_.
When an agent falsely or fraudulently represents himself as agent, he
binds himself and not his alleged principal.
If an agent, honestly believing he has authority to act, does not
have such authority, but discloses all the facts connected with his
authority, to the third person with whom he is dealing, he is not
personally bound. _A_, having previously acted as agent for _B_, in
purchasing onions by the crate, receives the following wire from _B_,
"Purchase one hundred crates, ship at once." _A_, supposing this
refers to the purchase of onions, shows the telegram to _C_, and
tells him that in the only other transaction in which he acted for
_B_ he purchased onions, and that he supposes this wire refers to
onions. He purchases one hundred crates of onions from _C_, and later
discovers that _B_ intended turnips, instead of onions. _A_ is not
bound personally. He has acted honestly and revealed all the facts in
his possession to _C_, who must act at his risk as to _A's_ actual
authority.
=50. Undisclosed Principal.= A principal, whose agent deals with
a third person for his benefit, without disclosing the name of his
principal, or perhaps without disclosing the fact of agency, is said to
be an _undisclosed principal_. For example, _A_ employs _B_ to purchase
one hundred crates of oranges. _B_ purchases the oranges from _C_ for
_A_ in his own name, not telling _C_ that the purchase is made for _A_.
In this case, _A_ is an undisclosed principal.
As a general rule an undisclosed principal, when discovered, is liable
upon the contract of his agent.
In case of an undisclosed principal, the agent is liable personally as
well as the undisclosed principal. If _A_ instructs _B_ to purchase
for him five cars of coal, and _B_ purchases the coal of _C_ in his
own name, without disclosing the fact of his agency, _B_ is personally
liable to _C_ for the purchase price.
The undisclosed principal is not liable to a third party if the third
party with full knowledge of the agency, elects to hold the agent. If
_A_ employs _B_ to purchase goods for him, and _B_ purchases the goods
in his own name from _C_, and _C_, before payment, learning that the
goods were purchased for _A_, elects to hold the agent _B_, by suing
him for the purchase price, or by doing or saying anything that shows
his determination to hold the agent, rather than the principal, he
cannot thereafter hold _A_.
The undisclosed principal may enforce against third persons the
contract of his agent. If _A_ employs _B_ to purchase goods from _C_
and _B_ makes the purchase in his own name for future delivery, _A_ may
compel _C_ to deliver the goods to him. This rule applies in all cases
where the third party is not injured by its application.
The liability of an undisclosed principal to third persons, upon
contracts made by an agent in the agent's name, is subject to the
further exception, that when the third party has led the undisclosed
principal to believe that he is looking to the agent alone for
fulfillment of the contract, and relying upon such conduct the
undisclosed principal settles with the agent, he is no longer liable to
the third party. In this event the third person is said to be estopped
from the right to sue the undisclosed principal. This rule is based
upon equitable reasons. There can be no such thing as undisclosed
principal in case of a negotiable instrument. No one is liable on a
negotiable instrument, such as a note, draft, or check, except the
maker, indorser, drawer or acceptor.
=51. Apparent Authority of Agent.= While it is true that an agent
must have authority from his principal, before he can bind his
principal in the capacity of agent, and while it is equally true
that third persons, in dealing with agents, must determine at their
peril that the agent has actually received authority to act for his
principal, a third party has the right to rely upon the implied and
customary powers accompanying an actual authority conferred upon an
agent. Few contracts are made express in all their terms. Language is
not susceptible of such nicety. In the express or implied contracts
used in creating agencies, many things are implied. A third person
dealing with an agent, is not limited by the actual authority conferred
upon the agent by his principal, if the character of the authority
apparently confers other customary or implied powers. Third persons
are said to have the right to rely upon the apparent rather than upon
the actual authority of the agent. This does not mean that an agent
can create an agency and bind his principal without having received
any authority from his principal to act as agent, but means that where
an authority of a certain character has been conferred upon an agent,
third parties dealing with the agent, have a right to rely upon the
apparent or customary powers conferred, rather than upon any secret
or unexpected limitations upon such authority. For example, an agent
has authority to sell silk goods and to make exchanges in silk. This
authority is printed on the order sheets furnished the agent. The agent
exhibits these order sheets to the customer and exchanges are made. The
principal cannot claim that the agent had authority to exchange only
goods of the principal's manufacture. The authority conferred upon the
agent to make exchanges, apparently was to make exchanges of any silks.
The principal cannot complain if third parties rely upon the apparent
authority.
=52. Secret Instructions.= So long as the agency is legal, a
principal may create an agency of as limited an extent, or of as broad
a nature as he desires. So long as the limitations which the principal
places upon his agent's authority are not of a nature to mislead
third persons, the agent cannot bind his principal by exceeding these
limitations. But if a principal confers an authority upon an agent
which impliedly embraces a number of powers, the principal cannot limit
these powers by secret instructions. The limitations upon an agent's
apparent authority must be brought to the attention of the third
party. For example, _A_, a wholesale dry goods dealer, may employ _B_,
a salesman, to take written orders only. If _B_ attempts to take oral
orders, the principal, _A_, will not be bound thereby. But if _A_ gives
_B_ authority to take written orders only, and secretly instructs _B_
to take no order less than fifty dollars ($50.00) in amount, or in
excess of two thousand dollars ($2,000.00), and _B_ takes _C's_ order
for forty-five dollars ($45.00), _C_ not knowing of this limitation,
_A_ is bound. If, however, _A_ instructs _B_ to take only written
orders, and in amounts ranging only from fifty dollars ($50.00) to
two thousand dollars ($2,000.00), and prints these conditions plainly
upon the order blank, _C_, in signing one of these order blanks for
forty-five dollars ($45.00), does not bind _A_. In this case, _A_ has
placed the limitation of _B's_ authority in _C's_ possession.
=53. Wrongful Acts of Agent.= An agent is personally responsible for
wrongful acts committed. The fact that he acts in a representative
capacity, does not excuse him from committing wrongs, nor does it
relieve him from personal liability therefor. The principal, as well
as the agent, is liable for the wrong committed, if authorized. If _A_
instructs his agent, _B_, to sell goods by fraudulent representations
and _B_, by means of said fraud, sells goods to _C_, _B_ personally, as
well as _A_ is liable to _C_, for the wrongful act. In the language of
the courts, an agent is liable to third parties for _malfeasance_, but
not for _misfeasance_. That is, an agent is liable to a third party for
wrongful acts done, but is not liable to third parties for mere failure
to observe the terms of his agency. In the latter case, he is liable to
his principal only.
=54. Delegation of Authority and Subagents.= Where personal judgment
and discretion are required of an agent, he cannot transfer his duties
to another, without the consent of his principal. _A_, a wholesale dry
goods merchant, employs _B_, an experienced traveling salesman, to sell
goods. _B_, by his contract, is bound to give his personal skill to _A_
and cannot employ _C_ to act as salesman for him. _A_ presumptively
employs _B_ to use his own skill and judgment. _B_ is not permitted to
delegate his authority to another.
Where, however, mere mechanical or ministerial work is to be performed
the agent is permitted to employ others to assist him, or to perform
the work. For example, _A_ employs _B_, an expressman, to carry his
trunk to the depot. _B_ may employ a boy to assist him in performing
the work, or may employ another to perform the work. Usage and custom
have much to do in determining whether or not an agent is permitted to
delegate his authority. The performance of a mere ministerial duty may
be delegated. _A_ employs _B_ to act as stenographer in reporting the
trial of a case. When it comes to writing out the testimony, _B_ may
perform the task himself, or delegate it to another.
When an agent employs a subordinate, or delegates his authority to
another on his own responsibility, the agent stands as principal
for the sub-agent, and the original principal is not responsible to
third persons for the acts of the sub-agent. If, however, the agent
is authorized by the principal to appoint a sub-agent, the agent is
bound only to exercise care in the selection of such sub-agent, and
the original principal is liable to third persons for his acts. The
sub-agent is answerable to the principal, and not to the agent for his
acts. For example, _A_, a florist, employs _B_ to deliver a box of
flowers. _B_ employs _C_. The nature of the duty is such that _B_ may
delegate it. But if _C_ is negligent in the performance of the work,
_B_ is liable to _A_ for the negligence, for the reason that _A_ did
not expressly or impliedly direct _B_ to employ another.
_A_, in Chicago, deposits for collection, a check drawn on a New York
bank. _A_ knows that it is the custom of bankers to employ other banks
for the purpose of making collections. If the Chicago bank uses due
care in selecting another bank to assist in making the collection,
and this bank makes the collection and fails before the Chicago bank
receives the money, _A_ must stand the loss, and not the Chicago bank.
_A_ authorized the employment of a sub-agent. There is some conflict of
authority on the legal question involved in the above example.
=55. Agent's Authority to Collect.= An agent authorized to solicit
orders is not thereby authorized to make collections on such orders.
If, however, the agent is entrusted with the goods, and delivers them
at the time the sale is made, he is authorized to receive payment
therefor.
An agent authorized to sell, is not authorized to exchange or trade
goods. He is authorized to make sales for cash only. If he accepts
checks, or sells on credit, he is personally liable for losses. There
is a tendency at present to permit the agent to accept checks in
payment. The custom of making payment by check is so well recognized
in many lines of business, that in some transactions it impliedly gives
an agent this authority. This was not formerly the rule, and is still
disputed by many courts.
=56. Agent's Signature to Written Instruments.= The proper method
for an agent to employ in signing a written instrument, as agent, is
to describe himself as agent for his principal in the body of the
instrument, and then sign his principal's name at the end thereof, by
himself as agent. For example, if _A_, is agent for _B_ in making a
contract of sale, the body of the instrument should state that "_B_ by
_A_, his agent, agrees," and the signature should be
(_B_..............)
(by _A_, his agent)
If the contract is merely signed "_A_, agent," the agent probably binds
himself only. This is especially true in case of sealed instruments,
such as deeds. In case of promissory notes, an agent who has authority
to make such instruments, may make them in the name of his principal
without using his own name at all. The more common form, however, is
to sign the principal's name, per the agent as agent, or to sign the
agent's name as agent for the principal, giving the principal's name.
The mere signing of the agent's name as agent is a mere description,
and probably binds the agent and not the principal. For example, if _A_
is agent and _B_ the principal, a promissory note executed by the agent
should be signed
(_B_..............)
(by _A_, his agent)
A simple contract should state in the the body of the instrument that
_A_, as agent for _B_, is making the contract, and the contract should
be signed
(_B_..............)
(by _A_, his agent)
or _A_, agent for _B_. A promissory note or simple contract made and
signed in the name of the principal, the agent's name not appearing,
is probably binding, but it is not good business practice. The exact
condition of affairs should be shown, and the name of the agent, as
well as that of the principal, should appear in the document.
=57. Authority of Agent to Warrant.= As to whether or not an agent
authorized to sell personal property has implied authority to warrant
its quality, is not uniformly settled. If there is any rule on the
question, it probably is controlled by usage and custom. If there is a
general well known custom to warrant a particular article, the agent
has implied authority to warrant the quality of the article sold. If
no such usage or custom exists, or if the usage or custom is purely
local and not general in its application, the agent has no authority
to warrant the quality of the goods sold. It must be remembered that
a principal is bound by the general character of authority he confers
upon his agent, by the agent's apparent authority rather than by the
actual authority, unless the latter is actually brought to the notice
of third parties. It has been held that an agent authorized to sell a
horse is authorized to warrant the soundness of the horse, and that
an agent authorized to sell reapers is authorized to warrant their
durability and fitness. It was held that a principal, who authorized an
agent to sell goods at a certain price, did not authorize the agent to
warrant to third persons that his principal would not sell to others at
a less price.
=58. Factors.= A factor, usually called a commission man or
consignee, is an agent entrusted with possession of his principal's
goods, and ordinarily empowered to sell in his own name. Like any
agent who has possession of his principal's goods with power to sell,
a factor has power to collect. He differs from a broker in that he has
possession of the goods of his principal, and is authorized to sell in
his own name, rather than in the name of his principal.
In the absence of contrary custom or express direction, a factor may
sell on credit. A factor, until instructed otherwise, may use his
discretion as to the time and price of sales, and is entitled to deduct
his commission based upon custom in the absence of special contract.
A factor may sue the purchaser in his own name, for the purchase
price. The principal may sue in his own name also. Persons dealing
with factors may hold the principal responsible for the contracts and
representations of the factor, the same as any undisclosed principal.
Factors are also personally liable to third persons for their contracts.
A factor must account to his principal for money collected, less his
commission and expenses. He is not obliged to keep such money separate
from his own, but he must keep accurate account of same, and remit
promptly when it is due, according to custom or special contact.
=59. Brokers.= A broker differs primarily from a factor in that
ordinarily he does not have possession of the article dealt in, and
acts in the name of his principal rather than in his own name. There
are many kinds of brokers engaged in common business life. Some of
these are insurance brokers, pawnbrokers, bill and note brokers, and
merchandise brokers. In the absence or special authority, a broker does
not have authority to collect.
=60. Auctioneers.= An auctioneer is a special kind of agent employed
to dispose of goods to the highest bidder at a public sale.
Some states provide by statute that auctioneers must be licensed, and
that they may charge only certain fees. Most licensed auctioneers are
required to give bond. In the absence of statutory regulations, any
person competent to perform the duties of an auctioneer may so act. An
auctioneer differs from an ordinary agent in that, in some respects, he
is agent for both seller and purchaser. He is agent for the seller in
offering the goods for sale, and in obtaining bids. When the highest
bid is received, however, and the hammer falls, he is deemed to be
agent for the purchaser, with authority to complete the sale in the
purchaser's name. If the contract of sale is within the Statute of
Frauds and required to be in writing, the auctioneer has the authority
of the purchaser to sign his name to a memorandum of sale, either by
himself or through his clerk. The bidder is bound by this contract,
made in his presence at the time and place of the sale.
The owner may fix such reasonable terms as he chooses, and the
auctioneer must follow out the terms made by the owner. If an owner
advertises the terms of the sale, bidders are deemed to have notice
of these terms. These terms cannot be varied by the auctioneer. If,
however, the owner publishes no special terms of sale, the auctioneer
has implied authority to fix customary and reasonable terms. Bidders
have the right to rely on such terms and the principal is bound by them.
In the absence of special instructions to the contrary, an auctioneer
must sell for cash. He has possession of the goods, consequently has
implied authority to receive payment of the price. He has no implied
authority to warrant the goods. He cannot bid in his own interest. If
bidders fraudulently combine not to bid against each other, for the
purpose of obtaining the goods at a cheap price, no title passes to the
highest bidder, by reason of the fraud.
So long as the auctioneer acts within his authority and reveals the
name of his principal, he incurs no personal liability. But if he
exceeds his authority in making a sale he is liable in damages to his
principal. If he does not reveal the name of his principal to bidders,
he is liable personally to them.
An auctioneer is entitled to recover from his principal the amount of
his compensation, including disbursements and expenses incurred in
the sale, care and preservation of the property. He is said to have a
_lien_ on the goods or proceeds of the sale, for his compensation. By
this is meant that he has a right to retain possession of the goods
until his compensation is paid, or in the case of sale, to deduct his
charges from the proceeds of the sale.
When authorized to sell goods on credit, in case payments are not made
when due, the auctioneer may sue in his own name. He may also sue in
his own name for wrongful acts of third parties, whereby the goods are
injured. The principal also may bring this action in his own name. The
principal is liable for the acts of his auctioneer, committed within
the actual or apparent scope of the latter's authority.
=61. Del Credere Agency.= An agent authorized to sell is not
permitted to sell on credit, unless expressly so authorized or unless
the custom or usage of the particular kind of agency impliedly carries
with it this power.
Some agents are, by their contracts of agency, authorized to sell on
credit, on condition that they guarantee to save their principals from
losses resulting therefrom. Such an agency is called a _del credere_
commission, and the agent is called a _del credere_ agent. This term
means that in consideration of the agreed commission or salary paid the
agent, the latter agrees to pay to the principal, when due, the sums
which third parties, who buy the principal's goods from the agent, fail
to pay.
This agreement to indemnify the principal against losses on credits
made by the agent, is regarded as an original promise on the part of
the agent, and not a promise to pay the debt of another. By reason of
this attitude on the part of the courts in interpreting this contract
as an original promise on the part of the _del credere_ agent to
pay his own debt, and not the debt of another, the contract does not
have to be in writing. (See Statute of Frauds.) For example, _A_, a
manufacturer of farm machinery, employs _B_ as agent to sell farm
machinery on credit, on condition that _B_ personally guarantees the
sales. _B_ sells a mowing machine to _C_, to be paid for within ninety
days. _C_ fails to make payment. _A_ may sue and recover the amount of
the purchase price from _B_.
=62. Real Estate Brokers.= A real estate broker is one employed to
make contracts involving the sale or leasing of real property. The sale
of lots, of houses and lots, and farms are common examples.
A real estate broker is seldom authorized to do more than find a
purchaser or tenant, not being authorized to make the lease or
contract of sale. By reason of this limitation generally placed on a
real estate broker's authority, many disputes arise over real estate
brokers' rights to compensation. A principal may enter into any kind
of contract he desires with a real estate broker, and is liable when
the broker has performed his contract, and not before. The difficulty
is in determining when the broker has substantially performed his
contract. If _A_ hires _B_ to procure a purchaser for his house and
lot, and agrees to pay him 2% of the selling price when he obtains the
signature of a financially responsible purchaser to a contract of sale,
_B_ is not entitled to his commission until he obtains such a party's
signature to a contract. The fact that _A_ has entered into this
contract with _B_, does not, in the absence of an express stipulation
to the contrary, prevent _A_ from selling the property himself, or from
employing as many other brokers as he pleases to attempt to make the
sale.
Most brokers, however, are employed on certain terms to obtain a
purchaser or tenant. If the agent succeeds in obtaining such a
purchaser or tenant, the principal must pay the broker the agreed
compensation. The owner cannot act unfairly by the broker. If the
broker obtains a tenant or purchaser by seeking him out, and by
interesting him in the property, the owner cannot avoid the payment of
commission by discharging the broker and completing the deal himself.
In the absence of an express agreement to give the broker a certain
fixed time in which to make the sale or find a tenant, the owner may
discharge the agent at any time he sees fit, just as the agent may
cease his efforts at any time he chooses. The owner cannot discharge
the agent just as the latter is completing the sale, in order to
take advantage of the agent's efforts, without paying him the agreed
compensation. The agent, in this event is held substantially to have
performed his contract. Contracts with real estate brokers should
be carefully drawn, and should contain express stipulations as to
the powers and limitation of the broker's authority. The temptation
is great on the part of both parties to claim that the sale was, or
was not made, through the efforts of the broker. The contract of
a real estate broker differs not at all from any other contract.
The conditions are such, however, that the agreement is frequently
indefinite, and it is difficult to determine when a substantial
performance has been made.
In the absence of any agreed compensation, the real estate broker is
entitled to receive the customary fees. In the absence of any custom
regulating the commission, he is entitled to receive a reasonable
compensation.
A real estate broker is not permitted to represent both parties, or
to receive compensation from both parties. If a broker is promised
compensation from the purchaser which he agrees to accept, without the
consent of the owner, he cannot receive compensation from either party.
=63. Termination of Agency.= If an agent performs the terms of his
agency, the agency is said to be terminated by performance. He ceases
to be agent, by reason of having performed his contract.
If an agent is employed to act as agent for a specified time, the lapse
of the stipulated time, of itself, terminates the agency.
An agency is a contract, express or implied, and it may be terminated
at any time by any act of the parties thereto showing such to be their
intention. There is one exception to this rule, and that is, that an
agency coupled with an interest cannot be terminated by an act of one
of the parties. This exception is discussed in a separate section.
Where an agency is terminated by failure or refusal of the principal,
or agent to carry out his terms of the contract, the defaulting party
is liable in damages to the other party. This does not prevent the
termination of the agency however.
[Illustration: A CORNER IN THE NEW YORK OFFICE OF THE H. W.
JOHNS-MANVILLE CO.]
Where an agency is terminated by the failure or refusal of either party
to observe the conditions of the contract of agency, the agency still
subsists on the part of third persons, who have dealt with the agent,
and who have not received notice of the termination. Upon revoking the
agent's authority, the principal must notify third persons, who have
dealt with the agent, or who have knowledge of the agency contract,
and who would be likely to continue to deal with him as agent. If the
principal does not give third parties such notice, he is still liable
to them on contracts subsequently made by the agent in the principal's
name. For example, if _A_, a wholesale druggist, employs _B_ to sell
goods for one year and _C_ knows of the contract, and at the expiration
of six months, _A_ discharges _B_ for failure to give him his exclusive
time, _A_ must notify _C_ of _B's_ discharge, else _B_ can still bind
_A_ by making contracts with _C_.
=64. Revocation of Agency by Operation of Law.= When one of the
parties to an agency contract dies, becomes insane or bankrupt, the
agency is said to terminate _by operation of law_. When the principal
dies, the agency terminates. Death of itself, constitutes notice to
third persons of the termination of the agency. This is true of all
agencies except those coupled with an interest, discussed in another
section. If any agent and a third person innocently make a contract in
the name of the principal after the death of the principal, and without
notice of the principal's death, the contract is not enforceable
against the principal's estate. Death of the principal revokes the
agency. Death of the agent also revokes the agency.
Insanity of the agent, or of the principal terminates an agency not
coupled with an interest. It is regarded the same as death of one of
the parties.
An agency is terminated by the bankruptcy of either principal or agent.
Mere insolvency on the part of the principal or agent does not, of
itself, terminate the agency, but bankruptcy, voluntary or involuntary,
terminates it, and is of itself, notice to third persons. An innocent
third person who has parted with his money on a contract made with
the agent after the agency has been terminated by reason of insanity,
or bankruptcy of the principal, may not enforce his contract, but may
recover his money. Injury or disability of an agent, rendering it
impossible for him to carry out the terms of the agency, terminates the
agency.
=65. Agency Coupled with an Interest.= An agency coupled with
an interest cannot be terminated by attempted revocation of the
principal, nor is it terminated by death, insanity or bankruptcy of the
principal or agent.
If the agent has an interest in the subject of the agency outside his
interest in his compensation, he is said to have an agency coupled
with an interest. Such an agency is irrevocable. _A_ pays _B_ one
thousand dollars ($1,000.00) for one eighth interest in a patent, and
in consideration of this purchase is given the agency to sell the
patented article for a fixed commission. This constitutes an agency
coupled with an interest, and is not revoked by an attempted revocation
of the principal or by the principal's death. _A_ is indebted to _B_,
his attorney, for one hundred dollars ($100.00). _A_ gives _B_ a note
for one hundred and fifty dollars ($150.00) to collect, agreeing to
pay him 10% of the amount collected, and to permit him to deduct the
one hundred dollars ($100.00) indebtedness. This constitutes an agency
coupled with an interest, and cannot be revoked by _A_.
To constitute an agency coupled with an interest, the interest must
be coupled with the subject matter of the agency, and not merely with
the compensation the agent is to receive. For example, if _A_ sends
his attorney, _B_, a note to collect, agreeing to give _B_ 25% of the
amount collected, this does not constitute an agency coupled with an
interest, and may be revoked at any time by _A_.
QUIZ QUESTIONS
LAW IN GENERAL
1. How many classes of rights are there?
2. Name them.
3. How did men derive these rights?
4. What limitations, if any, are there to rights?
5. Have property rights always been recognized?
6. _A_ finds a watch in the street and, without making any attempt to
find the owner, keeps it. Is the right of possession in _A_?
7. In primitive times were personal or property rights more generally
recognized?
8. How were rights originally enforced?
9. How are rights enforced at present?
10. How did laws originate?
11. Define _law_.
12. What does law embrace?
13. What connection have laws with courts of justice?
14. What connection, if any, have customs to laws?
15. What is the purpose of law?
16. What class of laws is enforced for the benefit of the state?
17. _A_ steals _B's_ horse. _B_, by proper legal action, recovers
possession of the horse. Is the law enabling _B_ to recover the
horse a law for protection of citizens, or for the protection of
property?
18. What are the sources of law?
19. Do decisions of courts form any part of law? If so, what?
20. What are the New York State Reports?
21. What are the Philippine Island Reports?
22. Is the treaty existing between the United States and Japan, law? If
so what kind of law?
23. Define statutes. How are statutes enacted?
24. To what classification of law do statutes belong?
25. Is the English Constitution written or unwritten law?
26. Do customs and statutes bear any relation to each other?
27. How is the record of the state statutes kept?
28. What are the general divisions of law?
29. Is any part of the unwritten law written?
30. Is all unwritten law written?
31. Is any written law unwritten?
32. Is unwritten law stable?
33. How, if at all, can the written law of a state or country be
changed?
34. Are treaties unwritten law? How, if at all, are the records of
Congress kept?
35. Give a general classification of law.
36. Is there a universally recognized classification of law?
37. Define _administrative law_ and give an example.
38. Define _public law_ and give an example.
39. Define _private law_. Classify private law.
40. Define _constitutional law_.
41. Define _criminal law_ and give an example.
42. Can the heir or personal representative of a murdered man ever
recover money compensation for the murder?
43. If so, is it by means of private or public law?
44. Is a criminal tried and punished by private or by public law?
45. Define _law of procedure_ and give an example.
46. What do contracts embrace?
47. What does the word _tort_ mean?
48. Give an example of a tort.
49. Does the same act ever constitute a breach of contract, a tort, and
a crime?
50. Define _commercial law_.
CONTRACTS
1. Define _contract_.
2. Give an example of a business transaction which constitutes a
contract.
3. What is the purpose of putting important contracts in writing?
4. What is meant by _offer_?
5. Give an example of offer.
6. A coat marked $25 is placed by a merchant in a window. Does this
constitute an offer?
7. An advertisement is put in a paper advertising chairs for $7.00
each. Does this constitute an offer?
8. What is an _agreement_?
9. Is an agreement a contract?
10. Give an example of an agreement.
11. What is meant by _acceptance_?
12. Give an example of a contract having no acceptance.
13. _A_ offers to sell _B_ his watch for $10.00. _B_ offers _A_ $8.00.
Is there an acceptance? Is there a contract in the above case?
14. What is a _counter offer_? Give an example of a counter offer.
15. What is meant by the term _meeting of the minds_?
16. Give an example of an acceptance not of the exact terms of the
offer.
17. What is meant by _mutuality_?
18. Distinguish _meeting of the minds_ and _mutuality_.
19. May there be an acceptance of a contract by an act? If the above
question is answered in the affirmative, give an example.
20. Must an acceptance be communicated to the offer?
21. _A_ writes _B_, "I will sell you my horse for $150. If I do not
hear from you to the contrary by Thursday noon I will consider the
horse yours." _B_ does not reply. After Thursday noon, to whom
does the horse belong?
22. Define _option_. Give an example of an option.
23. Does an option require a consideration to render it valid?
24. What is an _element_ of a contract?
25. Give the elements of a contract.
26. How many parties to every contract?
27. What is meant by _legal age_?
28. _A_, a male, sixteen years old, contracts with _B_, a female,
eighteen years old. Can _B_ avoid the contract on the ground of
the infancy of _A_?
29. Is fraud or duress a defense to a contract?
30. How many kinds of consideration are there?
31. Is a good consideration sufficient to support a contract?
32. Define _valuable consideration_.
33. Give an example of a contract which may be supported by a good
consideration.
34. What is meant by a _sealed instrument_?
35. Is something beneficial to the promisee a sufficient consideration
to a contract?
36. _A_ promises _B_ to pay him $100 if _B_ will promise to work for
him for one month. _B_ promises. Is there a consideration to this
contract? If so, what is it?
37. Define _mutual promise_.
38. Is a mutual promise a valuable consideration? Give an example of
mutual promise.
39. Define _past consideration_. Give an example of past consideration.
40. Does a past consideration support a contract?
41. What is meant by _adequate consideration_?
42. Does a consideration have to be adequate to support a contract?
43. May adequacy of consideration be considered in determining whether
or not fraud was used in procuring a contract?
44. Give an example of a promise to do something one is already bound
to do.
45. Is a promise to do something one is already bound to do a
sufficient consideration to support a contract?
46. Give an example of illegal consideration.
47. Does an illegal consideration support a contract?
48. Do all the terms of a contract have to be express?
49. Define _express contract_.
50. A housewife orders a sack of flour from her grocer by telephone.
The flour is delivered and accepted by her. Is this an implied contract?
51. Give an example of an express contract.
52. Do any contracts have every term expressly set forth?
53. Define _implied contract_.
54. Are uncertain contracts void or voidable? Give an example of an
uncertain contract.
55. Give the distinction between _unilateral_ and _bilateral_ contracts.
56. _A_ promises to sell his dog to _B_ if _B_ will promise to pay him
$5.00 the following day. _B_ promises to pay _A_ $5.00 the
following day. Is this contract unilateral or bilateral?
57. _A_ promises to pay _B_ $100 if _B_ will dig a well for _A_. _B_
digs the well. Is the contract unilateral or bilateral?
58. Distinguish _executory_ and _executed_ contracts.
59. _A_ promises to pay _B_ $5,000 if _B_ will deliver to him a deed of
his farm. _B_ delivers the deed. Is the contract executed or
executory?
60. Is the above contract executed as to _A_? Is it executory as to _B_?
61. Are infants bound by their contracts? Define _infant_.
62. Are infants' contracts void?
63. Distinguish _void_ and _voidable_.
64. Can a competent party contracting with an infant avoid the contract
on the ground of infancy of the other party?
65. Can an infant ratify a contract after becoming of legal age?
66. Explain how, if at all, an infant may ratify his contracts.
67. Define the term _necessaries_.
68. _A_, an infant, has not sufficient clothing. _B_, a merchant, sells
him a coat worth $7.00, for $14.00. Can _B_ recover anything from
_A_? If so, how much?
69. Is an infant entitled to receive his wages?
70. What is meant by _emancipation of an infant_? Is emancipation of an
infant ever implied?
71. What is meant by _novation_? Give an example of novation.
72. Are contracts made for the benefit of a third person enforceable by
such third person?
73. Are contracts of an insane person enforceable?
74. Are contracts of insane persons, intoxicated persons, and idiots
void or voidable?
75. _A_, while intoxicated, purchased a coat from _B_ for $10.00. The
following day, when sober, _A_ promises to pay for the coat. Can
_B_ enforce the contract?
76. Can an insane person make a valid contract during a lucid interval?
77. Can married women enter into contracts?
78. Do custom and usage ever enter into a contract?
79. _A_ purchases forty barrels of yellow grease from _B_, like sample
furnished. The grease arrives, ranging in color from white to black.
_B_ offers to show a custom among grease dealers, known to _A_, that
a composite sample is used in selling grease. Can he show this
custom as part of the contract?
80. Are oral contracts ever valid? Why, if at all, do some contracts
have to be in writing?
81. What is meant by the _statute of frauds_?
82. When and where did this statute originate? What was the purpose of
this statute?
83. Does the statute serve any useful purpose at the present time?
84. Do the states of this country have a _statute of frauds_, or is it
a part of their unwritten law?
85. By the terms of the _statute of frauds_ what contracts must be in
writing?
86. Are contracts covered by the Statute of Frauds illegal if not in
writing?
87. _A_ orally promises _B_ to work for him for two years for the
consideration of $2,000. Can either party enforce the contract?
88. What is meant by the term _specialty_? Are specialties included in
the Statute of Frauds?
89. Can you make an oral promissory note?
90. Can contracts be made by letter and telegraph?
91. _A_, by letter, offers _B_ $1,000 for _B's_ team of horses. _B_
mails a letter of acceptance which is lost in the mails. Is there
a valid contract?
92. _A_, by letter, offers _B_ $10 for a harness. By the following
mail, _A_ writes revoking the offer. _B_ receives the letter of
revocation five minutes after mailing his acceptance. Is the
contract revoked?
93. _A_, by letter, offers _B_ $1,000 for his racing horse and says,
"I will consider my offer accepted upon receipt of your reply."
_B's_ letter of acceptance is lost in the mail. Is there a valid
contract?
94. _A_ wires _B_ that he will pay him $100 per share for his
Pennsylvania Railroad stock. _B_ hands his telegram of acceptance
to the telegraph operator who fails to send it. The following day
_A_ wires a revocation of his offer. Is there a valid contract?
95. Does a revocation by wire or letter have to be received to be
effected?
96. Does an acceptance by wire or letter have to be received by the
offerer to constitute a valid acceptance?
97. In what respect do sealed instruments differ from ordinary
contracts?
98. At present what constitutes a seal?
99. At present is it the tendency of the law to favor sealed
instruments?
100. Are Sunday contracts void or voidable?
101. What makes Sunday contracts unenforceable?
102. What was _The Lord's Day Act_ of England?
103. What is meant by works of charity and necessity?
104. _A_ makes and delivers a promissory note to _B_ for $100 on
Sunday. Is the note enforceable?
105. What makes a contract illegal?
106. Are illegal contracts void or voidable? Give an example of an
illegal contract?
107. What is a gambling contract?
108. Are gambling contracts void?
109. Why are gambling contracts illegal?
110. Define _fraud_.
111. Is a false representation made during the formation of a contract
known by both parties to be false, a defense to the contract?
112. Give an example of a false misrepresentation which will serve to
avoid a contract?
113. Can there be duress without personal violence? Define _duress_.
114. Give an example of duress.
115. Do duress and fraud render a contract void or voidable?
116. Define _mistake_ in connection with making a contract. Define
_mistake of fact_.
117. Define _mistake of law_.
118. Does mistake of one party to a contract avoid the contract?
119. Does mistake of law avoid a contract?
120. Does mutual mistake render a contract void or voidable?
121. What is meant by a _contract impossible of performance_? Give an
example of a contract impossible of performance.
122. _A_, on April 4, enters into a contract dated April 2, by which he
promises to deliver to _B_ within twenty-four hours, five tons
of coal. Is _A_ liable on this contract?
123. Do floods, earthquakes, or lightning preventing performance excuse
performance?
124. Is a party to a contract excused from performance by reason of a
strike?
125. May a party to a contract stipulate against strikes and Acts of
God in such a manner as to avoid liability therefor?
126. If a party to a contract renders performance impossible can he
force performance?
127. What is meant by _conflict of law_?
128. Does the law of the place where a contract is made, or the law of
the place where the contract is enforced, prevail?
129. If a contract is made in one place, to be performed in another,
the law of which place prevails in the interpretation of the
contract?
130. What is meant by _assignment_ of a contract?
131. _A_, a singer, contracts to sing at _B's_ opera house for one
week. Can _A_ assign her contract to _C_, another singer? Can _B_
assign his contract to _D_?
132. What is meant by _giving notice of assignment_?
133. Is an assignment a contract?
134. What are the elements of a valid assignment?
135. Does an assignment require a consideration?
136. Write an assignment of a simple contract.
137. Define _several liability_.
138. Can a party be jointly and severally liable on the same contract?
139. If two parties are jointly liable on a contract can one of them be
sued thereon without the other?
140. If two parties are severally liable on the same contract, can both
be sued together thereon?
141. Define liability _in solido_. Give an example of liability _in
solido_.
142. How may a contract be discharged by performance? Give an example
of a contract discharged by performance.
143. What is meant by _tender_? What constitutes legal tender?
144. Does United States statute or a state statute make certain money
legal tender?
145. What kinds of money constitute legal tender?
146. _A_ owes _B_ $5.00. He tenders him the amount in nickels. Is the
tender good?
147. _A_ owes _B_ $500.00. He tenders him a certified check for the
amount. Is the tender good?
148. Can a contract be discharged by a subsequent agreement?
149. _A_ agrees to dig a well for _B_ for $10.00. Before _A_ starts
work, _B_ changes his mind, and offers _A_ $1.00 in settlement.
Is the contract discharged if _A_ accepts the $1.00?
150. Define _warranty_.
151. Give an example of warranty to a contract. 152. Does breach of
warranty discharge the contract?
153. Does breach of warranty give rise to an action for damages?
154. Define _rescission_.
155. Give an example of rescission.
156. Define _statu quo_.
157. Define _breach of contract_.
158. Give an example of breach of contract.
159. In case of breach of contract must the other party wait until the
time for performing the entire contract elapses, or may he sue
at once?
160. Define _bankruptcy_.
161. By what kind of law is bankruptcy regulated?
162. Does bankruptcy discharge a contract?
163. Define _voluntary bankruptcy_.
164. Who may become a voluntary bankrupt?
165. Define involuntary bankruptcy. Who may become an involuntary
bankrupt?
166. Define _act of bankruptcy_.
167. Enumerate acts of bankruptcy.
168. At common law could one party to a contract compel another to
perform it specifically? Under present law can a contract for
sale of personal property be enforced specifically?
169. What is the measure of damages for failure to deliver merchandise
under a contract of sale?
170. How did the court of equity originate?
171. Are juries used in courts of equity?
172. What classes of cases are tried in equity?
173. Does a court of equity have jurisdiction of a case where there is
a plain and adequate remedy at law?
174. With what kind of contracts is equity especially concerned?
175. Give an example of a contract which may be enforced specifically
by a court of equity.
176. Write a form for a simple contract between _A_ and _B_ for the
sale of a horse.
PRINCIPAL AND AGENT
1. What is meant by the term _agency_?
2. Give an example of a transaction completed by an agent.
3. Is there a limitation upon the kinds of business which may be
transacted by an agent?
4. Distinguish principal and agent from master and servant.
5. Define and give an example of _principal_.
6. Define and give an example of _agent_.
7. Define and give an example of _agency_.
8. Define _infant_.
9. Is a married woman seventeen years of age an infant?
10. May an infant be a principal?
11. Define and distinguish _void_ and _voidable contracts_.
12. May an idiot, insane, or drunken person act as principal?
13. May a corporation or partnership transact business through agents?
14. May a child eight years of age act as agent?
15. In general, what persons may act as agents?
16. May a person act as agent who is not capable of acting for himself?
17. May a person whose interests are opposed to those of his principal
act as agent?
18. May corporations or partnerships serve as agents?
19. Must an agent's authority to act as agent be in writing?
20. May an agent be appointed or authorized to act by implied contract?
21. Define and give an example of _implied contract_.
22. What is meant by _ratifying an act of an agent_.
23. Give an example of a principal's ratification of an unauthorized
act of an agent.
24. Give an example of a contract of agency which must be in writing.
25. Why must some contracts be in writing?
26. What are the principal provisions of the Statute of Frauds?
27. Must contracts of agency authorizing an agent to complete a land
transfer be in writing?
28. Must a contract authorizing an agent to procure a purchaser for a
house and lot be in writing?
29. Can a third party rely upon the statements of an agent that he has
authority to act as agent?
30. May a person do through an agent anything which he may lawfully do
by himself?
31. _A_ employs _B_ to purchase votes for an act pending in a state
legislature. Is _A_ or _B_, or both, guilty of a crime?
32. _A_ employs _B_ to paint a picture, and _B_ employs _C_ to paint
the picture. Must _A_ accept the work of _C_?
33. What things are necessary to enable a person to ratify the acts of
an alleged agent?
34. May a forgery be ratified?
35. Give a classification of agents.
36. _A_ is employed to deliver a package for _B_. What kind of an agent
is _B_?
37. Give an example of a universal agent.
38. Enumerate the duties a principal owes his agent.
39. _A_ employs _B_ to work in his garden. _B_ works for ten days, no
compensation having been agreed upon. How much, if anything, can
_B_ recover from _A_?
40. If an agent abandons his agency before the time of his agency
expires, can he recover anything for work performed? If so,
how much?
41. What duty, if any, does a principal owe to his servant as to
furnishing a safe place in which to work?
42. What rules, if any, does a servant assume?
43. In general, what are the liabilities of a principal to third
persons who deal with an agent?
44. Is a principal liable to a third person who has dealt with an
agent, who acted within the apparent but not the actual scope
of his authority?
45. Is a principal liable to third persons for lots committed by an
agent within the scope of the agent's authority?
46. Give an example of a lot or private wrong committed by an agent
while acting for his principal, for which the principal is not
liable.
47. Enumerate, in general, the duties an agent owes his principal.
48. Is an agent liable to his principal for mistakes of judgment or
discretion?
49. Is an agent who acts without compensation ever liable to his
principal for negligence? If so, give an example.
50. Enumerate, in general, the liabilities of an agent to third persons
with whom he deals.
51. _A_, an agent for _B_, sells goods to _C_, in his own name. _C_
afterwards discovers that _A_ is agent for _B_. Can _C_ hold _A_?
52. If an agent procures a contract for his principal by means of fraud
is the agent liable personally on this contract?
53. If an agent, believing he has authority to act as an agent, where
in fact he does not, reveals all the facts of his agency to a third
party with whom he is dealing, is he liable personally to such
third party if it turns out that he acted without authority?
54. Define and give an example of _undisclosed principal_.
55. Is an undisclosed principal when discovered, liable for the acts of
his agent?
56. Is an agent of an undisclosed principal personally liable to
third persons for acts of agency after the undisclosed principal is
discovered?
57. May there be an undisclosed principal to a negotiable instrument?
58. What is meant by _apparent authority_ of an agent as distinguished
from _actual authority_?
59. Give an example of an agency where the apparent authority of the
agent conflicts with the actual authority.
60. If an agent appears to have authority to act for another, but in
fact never received any authority, can third persons rely upon his
apparent authority?
61. Do customary powers belonging to an agent come within the meaning
of apparent authority?
62. May a principal limit an agent's apparent authority by printing
limitations in the agent's order sheet and in making contracts with
third persons? If so, give an example.
63. Define and give an example of _secret instructions_.
64. Can a principal evade responsibility to third persons by secret
instructions given to an agent?
65. If a third party dealing with an agent knows of the secret
instructions, is he bound by them?
66. Define and give an example of _sub-agent_.
67. Is a sub-agent responsible to the agent?
68. Is an agent ever responsible for the acts of a sub-agent?
69. What matters, if any, may an agent delegate?
70. Define and give examples of _mechanical_ and _ministerial duties_.
71. Distinguish an agency requiring personal skill, discretion,
and judgment, from one requiring the performance of ministerial or
mechanical duties.
72. When, if at all, is an agent authorized to collect?
73. Is an agent authorized to sell goods, always authorized to collect
for them?
74. Is an agent authorized to collect, authorized to take checks?
75. How should an agent authorized to sign a written instrument for his
principal, sign?
76. May an agent authorized to sign a promissory note for his
principal, sign his principal's name without his own?
77. An agent authorized to sign a written contract for his principal
signs his own name followed by the word, _agent_; _e.g._,
"_A, Agent._" Is the principal bound?
78. When, if at all, is an agent authorized to warrant the quality of
personal property sold?
79. Define _warranty_.
80. Give an example of an agent who is impliedly authorized to warrant.
81. Do usage and custom have anything to do with the agent's implied
authority to warrant?
82. Define _factor_, and give an example.
83. Do factors have possession of the goods?
84. Do factors have implied authority to collect?
85. Do factors have the right to sell goods in their own name?
86. Is a commission merchant a factor?
87. Define _broker_.
88. Distinguish _broker_ and _factor_.
89. Give an example of broker.
90. Is a real estate agent a broker, or a factor?
91. In what respect, if any, does an auctioneer differ from an ordinary
agent?
92. What is meant by _licensed auctioneers_?
93. Are auctioneers' fees ever regulated by statute?
94. What is meant by _auctioneer's lien_?
95. When, if at all, may an auctioneer sell on credit?
96. May an auctioneer make his own terms of sale? Are all third persons
bound by the terms advertised?
97. Define and give an example of _del credere_ agent.
98. Must a _del credere_ agent receive a separate consideration for his
guaranty?
99. When is a real estate agent entitled to receive his commission?
100. Does the contract of a real estate broker differ from the contract
of any other agent?
101. How may an agency be terminated?
102. Give an example of an agency terminated by lapse of time, and of
one terminated by act of parties.
103. May all agencies be terminated at the will of the parties?
104. What is meant by _notice to third persons of termination of an
agency_, and when, if at all, is this notice necessary?
105. Explain _termination of agency by operation of law_.
106. In case of termination of agency by death of principal must third
parties be notified?
107. Does injury or liability of an agent ever terminate an agency? If
so, under what circumstances?
108. Define _agency coupled with an interest_.
109. Is an agency coupled with an interest revocable at the will of
either party?
110. _A_ employs an agent at a salary of one hundred dollars per month,
promising him 1% commission in addition, on all orders taken in
excess of $1,000 per week. Is this an agency coupled with an
interest?
111. Give an example of an agency coupled with an interest.
[Illustration: CHAMBER OF COMMERCE, CHICAGO, ILL.]
COMMERCIAL LAW