Find Legal Information

3-04 Agent and Third Person Relation

Download pdf

CHAPTER 3-04AGENT AND THIRD PERSON RELATION3-04-01. Agent warrants authority. One who assumes to act as an agent therebywarrants to all who deal with that person in that capacity that the person has the authority which<br>the person assumes.3-04-02. When agent liable as principal. One who assumes to act as an agent isresponsible to third persons as a principal for that person's acts in the course of that person's<br>agency in any of the following cases, and in no others:1.When, with that person's consent, credit is given to that person personally in a<br>transaction.2.When that person enters into a written contract in the name of that person's principal<br>without a good-faith belief in having the authority to do so.3.When that person's acts are wrongful in their nature.3-04-03. Surrender of property adversely claimed. If an agent receives anything forthe benefit of the agent's principal, to the possession of which another person is entitled, the<br>agent on demand must surrender it, or so much of it as the agent has under the agent's control at<br>the time of the demand, to such other person, on being indemnified for any advance which the<br>agent has made to the agent's principal in good faith on account of the same. The agent is<br>responsible therefor, if the agent delivers it to the agent's principal after notice from the owner.Page No. 1Document Outlinechapter 3-04 agent and third person relation