620 



LEGAL DEPARTMENT. 



Duties of Agent to Principal. The first duty of every agent is to 

 obey instructions. In cases of extreme necessity the agent may be ex- 

 cused for disobedience of orders ; neither is he bound to obey when told 

 to do an illegal or immoral act. 



An agent must transact all business in the name of his principal or he 

 will be personally liable. 



An agent'must not mix his property with that of his principal, so as to 

 make it impossible to distinguish one from the other. 



Commission MercFiants. A commission merchant is one who sells 

 goods for another, receiving as compensation a certain percentage of the 

 sales, called commission. The commission merchant very seldom dis- 

 closes the name of his principal. He has actual possession of the goods 

 to be sold, and is bound to take good and proper care of them, such as 

 he would take of his own property of a similar nature. 



In the sale of goods the commission merchant should observe the in- 

 structions of the person sending the goods to be sold, but, when he 

 receives no instructions, must use his utmost skill and knowledge, and 

 sell for the best prices. 



It is a common practice for commission merchants to advance money 

 upon goods consigned to them. In such cases they have a lien upon 

 them for all cash ad\'anced, and for expenses and commissions. " Alien 

 on personal property is a right to hold it against the owner ; ' ' that is 

 the owner cannot take away his goods until he has paid the charges 

 against them. The commission merchant may sell the goods in his pos- 

 session in order to satisfy his claim, but must pay over the surplus to the 

 owneri 



Note. — i. A seller of goods who accepts, at the time of sale, the 

 note of a third party, not indorsed by the buyer, in payment, cannot, in 

 case the note is not paid, hold the buyer responsible for the value of the 

 goods. 



2. An agreement by the holder of the note to give the principal 

 debtor time for payment, without the consent of the surety, discharges 

 the surety. 



