The Law of Agency

Cover The Law of Agency
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Iron Co., 21 Wis. 458; Holm v. Bennett, 43 Neb.
808, 62 N. W. Eep. 194.
MODES OF CREATING AGENCY CONTINUED 8l two recruits and the defendants agreed to pay liim $1,100 for his services. Later they refused to pay on the ground that they had ratified the act under a misapprehension as to the facts. Action was brought and the judge in the lower court instructed the jury that if the defendants' misapprehension of the facts arose from the negligence or omission of the defendants to make inquiries th
...en the plaintiff could recover. But the court held that the defend- ant was not liable.
Said the court: "Eatification of a past and com- pleted transaction, into which an agent has entered without authority, is a purely voluntary act on the part of the principal. No legal obligation rests upon him to sanction or adopt it. No duty requires him to make inquiries concerning it. Where there is no legal obligation or duty to do an act, there can be no negligence in an omission to perform it.
* * * We do not mean to say that a person may wilfully shut his eyes to means of information witliin his own possession and control and thereby escape the consequences of ratification."" § 71.


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