(e) Under Seal. If the agent enters into a specialty contract using his own name in the agreement, he is liable whether the principal be known or unknown.

2.

When Neither Party Is Bound. (a) Death. The death of the principal works a revocation of the agency, and a contract formed after that event is a mere nullity.

(b) Assumes Risk. If the agent discloses all the authority to the third party, and this authority is insufficient, a contract formed as a result of this will not be effective. The principal did not authorize it nor did the agent warrant his authority. The risk is with the third party, as he is the judge of the sufficiency.

(c) War. The beginning of hostilities between the respective countries of the parties suspends all contractual relations between such parties.

(d) Public Agents. All officers of cities, states, and the general government are agents of such principals. Their contractual powers are clearly indicated and limited. The public is held to have knowledge of these rights and duties. Such agents assume no personal liability in the contracts that they enter into in behalf of their respective principals, even though they exceed their authority.

The relation between agent and principal is regulated by the law of

contracts.

The agent is entitled to compensation, he must possess skill and ability, and he must be loyal.

An agent cannot serve two masters; therefore must make an accounting.

The principal is liable on all authorized contracts, whether express or implied.

If the principal allows a party to represent himself as an agent he will be bound by the contract.

A principal is responsible for the torts of his agent.
Notice to an agent is notice to the principal.

Public agents are not personally liable if they exceed contract powers.
The third party must not interfere with the contract of the agency.
An agent is liable to a third party if he exceeds his authority.

The principal assumes the liability if he ratifies the agreement either expressly or by implication, by taking the benefit.

An agent is liable to a third party if he holds himself out as principal, or conceals his principal, or has a fictitious principal.

An agent warrants the competency of his principal.

A contract made by an agent subsequent to the death of his principal is a nullity.

A state of war between the respective countries of the contracting parties suspends the contractual relationship.

What is the relationship between agent and principal? Discuss the duties of each. What is the rule as to compensation and outlays made by the agent?

What is a lien? What is the rule relating to instruction? Discuss skill of an agent.

What do you understand by saying that an agent must make an accounting? What is the nature of the contract between the principal and the third party?

Explain how principal may be bound when agent exceeds authority. What is the scope of the agent's authority? What is the rule in regard to an agent's torts? What is the rule of notice? What are the duties of public agents?

What is the relationship of third party to principal? What is the nature of the relationship between the agent and the third party? When is the agent bound? When is neither party bound? State the rule in regard to the liability of public agents.

113. Introduction. Mutuality is a predominating factor in the formation of the agency contract. The needs of business created the necessity. The contract affects but the agent and principal, and since this contract is formed as a result of an offer and an acceptance it may be cancelled by a like process.

If the agency is for a single act, or a certain time, the accomplishing of the act or the expiration of the time works a dissolution of the agency so far as the parties are concerned.

114. Revocation. The contract of agency is of a confidential nature, and since the principal has conferred the authority

on the agent he should have the power to annul the appointment. This is true even though there may be an agreement to the contrary. The principal has the power to sever, at all times, the relationship although he may not have the right.

The agent's authority to act may be revoked by express statement to that effect, or it may be by implication where the principal acts in such a way that it is impossible for the agent to act, as when an agent is appointed to rent certain property belonging to the principal, who sells same before the agent can act.

115. Notice. So far as the principal and agent are concerned, the notice of revocation to the agent, either express or implied, terminates the agency, but in order to fully protect himself the principal is obliged to give notice to all third parties with whom the agent has transacted business or who have knowledge of the appointment. The nature of the notice would depend upon conditions. If the third party received actual notice, it would be sufficient. If he has information that would be investigated by a person of ordinary caution, and who does investigate and thereby receives notice, it is sufficient. Notice is generally effected by a written communication being mailed to all customers who have had dealings with the agent and a notice by publication to all others.

116. Liabilities. While, undoubtedly, the principal has the power to discharge, he is bound to respect the contracts with the agent or be held in damages.

1. Coupled With an Interest. An agent who possesses an interest in the agency cannot be discharged by the act of the principal. This must not be confounded with a percentage of profit that the agent may receive as the result of the agency contract, which is not sufficient to prevent his discharge. An agent is appointed to sell certain property, deduct commissions, and place the proceeds to the credit of the principal on a debt due the agent. The agency in which the agent has an interest cannot be terminated by the principal.

113. Introduction. Mutuality is a predominating factor in the formation of the agency contract. The needs of business created the necessity. The contract affects but the agent and principal, and since this contract is formed as a result of an offer and an acceptance it may be cancelled by a like process.

If the agency is for a single act, or a certain time, the accomplishing of the act or the expiration of the time works a dissolution of the agency so far as the parties are concerned.

114. Revocation. The contract of agency is of a confidential nature, and since the principal has conferred the authority