Story Case

Thomas Wood and James Brady entered into a partnership agreement to conduct a bond brokerage business. Brady was twenty years old. During the course of the first year's business Brady made a number of partnership notes, signing the firm name "Wood & Brady," and kept the money without the knowledge of Wood. Later when suit was brought upon the notes against Wood, he set up the defense that Brady was a minor with no authority to sign notes. Is this a good defense?

Note: In the law of partnership, each partner is the agent of the other.

Ruling Court Case. Talbott Vs. Brown, Volume 44 Illinois Reports, Page 66

This was a suit brought by Brown to recover title to certain land alleged to have been sold by Talbot's son and agent. Talbot claimed that, since his son was a minor when the contract of sale was made, Brown had no legal right to insist upon a conveyance. The Court held that if the infant was authorized by his father to make the conveyance, the mere fact that he is an infant can afford no defense to Talbot; for, although the contract of an infant is not binding upon him, he can act as an agent, their contracts made in that character will be binding upon the principal to the same extent as if such agent were an adult.

Ruling Law. Story Case Answer

A person cannot do through an agent what he himself might not have done. No such high degree of capacity is requisite for one to act as agent. The principal must act independently. He relies upon his own judgment and skill. He is bound by acts and contracts. But the agent acts dependently. He relies, not on his own, but on the principal's judgment and skill, and as a rule no liability is imposed upon him for his acts. Consequently a very high degree of capacity is not required of him.

It is sometimes said that an agent must have at least a minimum amount of intelligence. However that may be, so long as a principal is willing to trust such a person, most any one should be able to act as agent, except in so far as statutes have enforced restrictions upon certain classes of agents.

In the Story Case, the fact that Brady was a minor is immaterial. "Wood was of age with authority to act, and therefore he could authorize Brady to be his agent.