Agent. One

authorized to transact busine for another. A principal is responsible for the act of an agent, but the agent who exceeds his authority renders himself personally liable. An agent-cannot bind his principal by any act performed contrary to instructions unle it be an act which agents of his cla usually have authority to perform and the person with whom he is dealing is ignorant of the instructions which limit the agent’s powers in that particular case. A person dealing with an agent is entitled to a ume if not advised to the contrary that he has the authority usually po e ed by agents in the same line of busine . If a person dealing with an agent knows that the agent is acting contrary to his instructions the principal is not bound by the agent’s acts. i Otherwise he is bound. Any commi ion that an agent undertakes to execute he by implication represents himself as able to do in a reasonj ably correct and succe ful manner. If by reason of his own ignorance of his duties as agent his work is of no value he can not charge for it. An agent is bound promptly to obey all proper instructions of his principal and faithfully and particularly to account for all the money and other property of his principal which may have come into his hands. Such an accounting he is bound to make at some reasonable time without special instructions and he is bound to make it at any time when he is called upon todoso. An agent who persistently disregards his principal’s demand that he shall make an accounting is derelict in a duty which the law eniorces with strictne and he has thereby given sufficient cause for his dismi al. When a reasonable time has elapsed after the demand for an accounting and the agent has no valid excuse for a failure to make it, as sickne or unavoidable accident, he may be discharged. An agent having the custody of his principal’s property is bound to insure it if instructed to do so. Moreover, he is bound to insure it without special instruction if it has been his own custom or if it is a common custom of agents having ww 18 SVUTH'S FINANCIAL DICTIONARY. = the custody of property of that kind to insure it without instruction to do so. The owner of property is justified in supposing that the usual custom will be followed by his agent in caring for the property without any special instruction and in the event of the agent's failure to follow the custom he is liable for a lo suffered by his principal through such neglect. In any other case he is not bound to insure unle he receives specific direction to do so. If an agent (or executor or trustee or attorney) deposits in a bank or other depository in his own name money which he holds in trust it shall be the agent’s lo in case the bank (or depository) fails. The reason of the rule is that an agent cannot be allowed to determine after a lo whether the money on deposit was his own or that held by him in trust. The presumption is that a deposit belongs to the depositor and the agent (who is a trustee) is not allowed by the courts to dispute that presumption after a lo . If the agent wishes to charge his principal with the lo if any should occur he must state to the principal when the deposit is made that it is the money of the principal and not his own; that he is not only an agent but that in this particular transaction he is acting in that capacity. If there is nothing in an agreement to the contrary a broker’s commi ion is earned when a sale has been made and all that he engaged to do has been done. Whether the contract into which the buyer and seller have entered as a result of the broker’s negotiation is carried out or not has no effect upon the validity of the broker’s claim for his commi ion. If there is nothing in the agreement and if there is no trade usage to the contrary a brokcr’s commi ion is due and payable as soon as earned. On the other hand, if the exact amount of a broker’s commi ion in any particular transaction is to be ascertained at some time after the transaction is made the broker cannot claim any part of the sum until the full amount is determined. One may after ceasing to act as agent of another find that the results of his efforts are still availed of by his former employer. His particular methods of doing busine and his list of customers are both likely to be familiar to the employer, who may make any use of them he sees fit which is not fraudulent. Such use can be prevented only by a contract between the principal and agent. For additional information see Principal. 23