SALE AND WARRANTY BY AX AGENT OR SERVANT. 8? 



his negligence, (a) especially if he have benefited by it ; (h) 

 but unless the fraud or negligence falls Avithin the actual or 

 implied authority, it is not necessarily the fraud of the 

 principal, (c) 



When an agent selling a horse does not disclose his 

 principal, he is personally bound to deliver it.{d) If a person 

 sells goods under the belief at the time of contract that he 

 is dealing Avith a principal, but afterwards discovers that the 

 person with whom he is dealing is not the principal in the 

 transaction, but agent for a third part}^ though he may in 

 the meantime have debited the agent with it, he may 

 afterwards recover the amount from the real principal.(e) 

 When a servant is a special agent he is invested only with 

 powers limited to the duty he has to perform, and it is the 

 duty of parties contracting with him to ascertain the scope 

 of his authority ; for the principal will not be bound if the 

 agent act beyond the powers expressed in or necessarily 

 implied from the terms of his authority. The rules regarding 

 this are(/) : — (1.) If the terms of the agency are express the 

 limits are absolute. (2.) The agent's powers and duties are 

 to be regulated by ordinary acts and skill and knowledge of 

 the person in the particular line of business. (3.) Where 

 any power is necessary or reasonable in order to the 

 accomplishment of the purpose it is to be implied. ((/) But 

 an auctioneer has no power to warrant a horse sent him for 

 sale.(^) (4.) If agent be at a distance and in difficult 

 circumstances he is not liable if he act with sound discretion. 

 (5.) An agent has power to pledge or sell a horse of his 

 principal for advances ; but not to borrow on his credit or 

 bind him as a cautioner. (G.) All mercantile mandates 



(rt) See §§ 150-156. 



(6) Lord President Inglis in Clydesdale Bank v. Paid, 1887, 4 R. 626. 



(c) Coleman v. Jlickcs, 1855, 16 C.B. 104. 



(d) B.C. i. 536 ; Smith's Mercantile Law, i. 173. 



(e) Per Lord Tenterden in Thomson v. Davenport, 1829, 9 B. and C. 78, 86. 

 (/) B. Pr. 225. 



(y) Brady, cit. p. 86. 

 (h) § 27. 



