This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 403.— If a parcel of money is receipted for by the local agent of an express company in a bank's own office would the express company be legally responsible for the loss if the money should be lost or stolen while being conveyed by the local agent from the bank to his own office? No special authority from the express company is held authorizing the local agent to call at the bank and receipt for such parcels.
Answer.—Without being advised of the extent of the local agent's authority and the regular course of dealing, knowledge of which could be brought home to the company, it is impossible to express an opinion as to the liability of the company under the circumstances stated in the question. If it was beyond the scope of the agent's authority the company is not liable. The answer to the question would depend upon the course of dealing between the bank and the company, and upon the real authority of the agent, or upon the authority which it might be held the company had held out as possessed by him.