Cases On Commercial Law Contracts Agency Sales Negotiable Paper Partnerships

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Cases On Commercial Law Contracts Agency Sales Negotiable Paper Partnerships
Alfred William Bays
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Mechem on Agency, at sections 545 and 546, thus states the law: 'Sec. 545. Of course if the other party knew, or by the exercise of reasonable care might have discovered, the want of authority, he cannot re- cover. This implied warranty by the agent of his authority must ordinarily be limited to its existence as a matter of fact, and not be held to include a warranty of its adequacy or sufficiency in point of law. ' * Sec. 546. Where Agent Discloses All the Facts Relating to His Authority. Wher...e, however, the agent, acting in good faith, fully discloses to the other party at the time all the facts and circumstances touching the authority under which he assumes to act, so that the other party from such information or otherwise, is fully informed as to the existence and extent of his authority, he cannot be held liable. It is material, in these cases, that the party claiming a want of authority in the agent should be ignorant of the truth touching the agency. If he has full knowledge of the facts, or of such facts as are suffi- cient to put him upon inquiry, and he fails to avail himself of such knowledge, or of the means of knowl- edge reasonably accessible to him, he cannot say that 340 AGENCY he was misled, simply on the ground that the other assumed to act as agent without authority.

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